In session 1 when Steve (Hi-def) was playing with Nate (Gem) and they were not playing well, Steve pulled them being as awesome band out of his ass. But leaving it like that didn't sit well with me, because Steve Bungalow is not a magician or psychic or anything like that, and not having an explanation makes it seem like that.
Essentially he found videos of people playing expertly in the intertubes and super imposed the images of those movements onto the two of them with an invisible, one photon thick layer of hard light. this layer subtlety corrected every movement they made to the correct one. So if your g-chord fingering is just a shade off and would sound like crap, the superimposed layer guides it to the correct one. It you drum a shade ahead, it slows your arm down that hair of a second to hit exactly on beat if your fingers are getting tired, the layer adjusts and compensates. I don’t think they could have played a wrong chord or sing off key if they tried.
It’s not magic, it's more like autotune for the body.