From young Sylvie's point of view, everything that played for laughs through Loki's eyes — the color scheme, the robot scanner, the oddly formal courtrooms — feels intimidating.
This is backed up by marketing footage where a wide shot of the same sequence offers a clear look at the city in shambles.
Hopefully, this isn't the last we see of Mobius.
It was the horror and devastation on Loki's face that convinced me it was real.