As is usual for a WMG page, Massive Spoilers ahead.
Agent Morocco is part of the Rebel Flagship's crew
Many players interpret the crew manning Flagship's artillery pods (specifically the Laser Gunner) to be a Federation Spy, preventing the Flagship from activating its AI core. Not only is Morocco a Federation Intelligence agent, but she is able teleport (meaning that she can enter and leave the sole artillery pod), and also knew precisely how many ships have battled the Flagship. This series is all part of Jose's mind.
Being a Galactic Garbage Man with only your brother for company must be somewhat boring. Besides space-walking outside the ship and whatever is on the ship, Jose's only source of entertainment is his own imagination. With the current conflict, Jose makes up in his mind how he and Ricardo find the data that allows them to defeat the Rebellion (and giving him a paid vacation on Sunshine III), and how he reunites with his mother note for a short time.- This also justifies how in the in-game run that formed the series, the Kestrel crew refused surrender of the Beam Mercenary when in the series, the mercenary's surrender was a ruse. Jose places himself and the Federation as the good guys.
- And how the whole Kaban Arc was a trading event in-game.
