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So basically they are saying we are a 3D projection (extrapolation) of a 2D source?

Can we do anything useful with that like FTL space folding?

Basically, but the numbers are higher than 2 and 3. String theory represents the universe (the projection) as 10-dimensional, for instance.

Yes, but this theory is simpler compared to the 10+ dimensions of string theory and m-theory.