Acharya Prashant clarifies that Vedanta does not teach that the Atman or God is located within the physical body or the mind. He explains that the idea of God being 'within' is a gross misinterpretation, as the Atman cannot be contained by space or time. In the path of knowledge, looking within is a process of negation where one scrutinizes thoughts, emotions, and identities to realize they are not the ultimate truth. This process leads to the dissolution of the ego rather than the discovery of a tangible God inside oneself. The speaker asserts that the ego is the 'patient' that needs healing, and the concept of God is a useful method or 'trick' to instill humility and facilitate this healing. He further explains that spiritual stories and myths are deliberately designed to be transcendental and non-human to prevent the ego from identifying with the truth. By describing God as being both everywhere and nowhere, or within and without, scriptures aim to break the mind's tendency to personalize the divine or limit it to three-dimensional reality. Acharya Prashant emphasizes that the ultimate goal of spirituality is not the attainment of a deity but the dissolution of the restless ego. He concludes that peace can only be found by abiding in a reality that exists beyond human conceptualization, space, and time.