There are a lot of buzzwords in vidya but "immersion" isn't one of them.
It stems directly from the literary tradition of suspension of disbelief, which was pioneered by Samuel Taylor Coleridge in the 19th century. The reader accepts fiction as real for the duration of reading, so long as the fiction is convincing enough. Internal consistency is key to this.
Most video games in the 3D era are inherently Coleridgean in nature. Deus Ex, Red Dead Redemption, The Last of Us, and so forth absolutely would not work without suspension of disbelief. Prove me wrong.