I’m embarrassed to say that I have encountered this, this particular type of story on multiple occasions… So I got curious, is there a name to this trope?
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Aladdin (1992). The Genie is the last survivor of the AI wars and has mental damage. The Cave of Wonders is another remnant. “Magic” is low level AI responding to human intent. Iago is an uplift. Agrabah is literally a generic Middle Eastern country because it was assembled from the fragmented records of what remained of the Middle East.