Bedrockgames
I post in the voice of Christopher Walken
The only way you can talk about literary agency is to treat the characters and the fiction as real and look at it that way. There's really only one form of agency, literary agency is a device by which you reify the fiction so as to evaluate it in terms of agency. It's a trick. And, it's absolutely incoherent to promote evaluation of literary agency and then, to argue against a point of literary agency (the character recalls some fact and acts upon it) you switch to treating the fiction as fiction. It's special pleading, where a thing is this way except when it's not, and the only way to tell which is which is if it agrees with your conclusion or not.
So, yes, it's coherent if we're using post hoc justification for evaluations. It's just that post hoc justifications are, themselves, incoherent. And note that I'm using incoherent as in "inconsistent with itself" and not random mumblings that cannot be understood.
First, no, you can talk about the characters having agency while also understanding they are not real. You can say, for the purposes of agency, I am going to think of them as real. Which is fine. But that is also what i am doing with the setting and keep getting push back from your side (for the purposes of character agency, we are going to treat this setting like it is real).
No it isn't incoherent at all. Not if you understand what I am saying. I am trying to describe how I think the term came to be adopted by most RPGers. I agree with Frogreaver, it was a response to railroading, and the literary term agency was adopted, but obviously adapted to the roleplaying conversation. It wasn't an 1-1 import of the term, and I wasn't ever saying it was. And when I made that statement I was just trying to make sense of the split in use here. One side is using agency to mean power in the game (including your power to narrative things and impact play through mechanics). The other is using it to mean your ability to freely act in the setting through your characters. I think the latter feels like it comes more from the literary useage (and my memory is that is where it was coming from when I started seeing it).