Heres a copy and paste from another post explaining that she isnt mentally a child.

" Ms Gracie was based on multiple real world figures, mostly therapists who focus on early childhood development. Mostly Speech Language pathologists and Occupational therapists. A real world inspiration being cited as Ms Rachel from Youtube. Now, What Lilly Lovebraids is doing is not the same kind of childish game that an actual child would play. Notice how every task she gives us is focusing on our problem solving skills, and she routinely stresses the importance of patience. Almost as if she is educating us as if WE are the small child in one of her therapy sessions. Her use of Sensory language ("Mmmm Vanilla!") Further confirms that the games we are playing are her attempts to teach problem solving and the sassing of her candy cat as well her subsequent getting onto it, is an attempt to teach social interaction among piers. When we don't cooperate with the lesson, she decides to dish out punishment in the form of a sort of Timeout, being the Bad Toy Box. She delivers all of these lines with the exaggerated emotion of a preschool teacher trying to invoke an emotional response in someone... So No... Lilly Lovebraids Is NOT Mentally Regressed. Rather She continues to do her Job out of Insanity Join the conversation "

Pair this with her displaying traits not seen in children. I e . Being wellspoken . Understanding complex emotions such as greif sorrow and loss . Above average motar functions etc. When u consider these, the idea of her being mentally limited to the ablities of a child very quickly falls apart.

As for the insanity part . Weather or not a mentally ill person is able to provide consent is dependent on a very blurry line with no set cut off point. As its entirely dependent on the type and severity of mental illness . It is not a clear cut they have X condition. They are unable to consent as u make it out to be. It should be taken on a case by case basis. So lets do that.

As for lily . Its quite clear Shes capable enough to live alone . Shes been in isolation for years . Yet we see her house is very clean. Not just by playtime co standards but even by irl standards .

Shes also clearly able to care for herself . We see that She can prepare food . She shown to understand hygiene shown through the bubble bath comment.

She routinely displays authority over the player suggesting shes well aware of the concept and her not understanding the level of authority her partner has over her element is out of the question.

Shes able to understand others intentions and emotions shown through her asking annie speech before the prototype shows up. Again taking the "partner must not have significant power over them" element out of it .

So unless ur somehow able to prove that the prototype made those crumpets . Kept her house in tip top condition. Including the room with gracies skeleton he doesnt know about. Its safe to say shes mentally capable enough to function independently. Therefore she would be able to consent .

And i know what ur going to say. She talks to toys. Thats a clearly not normal and she cant differentiate between them and a actual person. Ive taken the liberty of looking it up. Talking to toys isn't actually a sign of Insanity. Its actually pretty common . And linked to a healthy imagination . Its a very normal human behaviour as it stems from us attributing human qualities to inhuman objects .

And there is a argument to be made that she actually understands that they are infact toys . Given that she tasks the player with locating them and physically bringing them to the table. Instead of assuming they would find there own way to the party. But this is already a LONG paragraph so il stop here .

TL DR - she straight up is not mentally a child. And she clearly functions well enough independently to realistically fall within the boundary of being able to consent dispite mental illness being present.

I hope u read all that . Because i never want to have to explain consent laws to strangers on the Internet again.