Acharya Prashant explains that the universe is not external to the observer but is a projection of the human system. He clarifies Kabir Saheb's words by stating that the sun, moon, and the entire universe are functions of the observer's own being. The ego, which relies on limited instruments like the physical brain and eyes, fails to comprehend this reality because it is enmeshed in the universe rather than witnessing it. He describes the ego as a drunken soldier using substandard weapons, suggesting that true transformation requires a 'weapon' that turns back upon the ego itself.