Well I mean, I don’t think (AB world) that it only applies to that. I mean, with the AB logic, fish have souls too, and there was a fishing scene somewhere in the series, and it was alive.
Sadly, since this IS Key, I doubt we’ll get any sort of understanding to how reincarnation works in the AB universe. For now, and probably for the rest of the story, it’s probably most likely, gonna be considered Key Magic.
Though I don’t think we need an answer to it. It gives off a “mystery” vibe that makes the AB Universe unique. I understand people who want to know the aspects to how certain things work in certain worlds, but for AB, the “thing” being left untold is better off untold.