That is very close to what I had in mind. Except, they are living on an artificial Dyson Swarm created by beings that have long since perished (or evolved themselves via a singularity). In ages past, Earth like planets in the system that once harbored life were completely consumed/destroyed to create the Dyson Swarm.
In the current age, life is completely artificial in nature. Creatures range from old crude robots to complex artificial cellular forms of life.
One thought I had was that a major faction of artificials would be completely under the control of the "mother brain". Other factions, living in the wild zones would oppose this oppressive entity to variing degrees. And one dangerous faction in particular would seek to steal the secret of biological life, which they believe the mother brain is withholding.
The PCs would be stuck in the middle of this conflict. They would have to avoid being connected "to the brain" (think Borg) at all costs. They might even quest to destroy her, to free millions of oppressed artificials or even start of a new genesis. At some point, during the campaign, they would be given the option to transfer their minds into biological life forms. It's a sci-fi Pinocchio story of sorts, but think it will work out well.
When the PCs start, I might have them make standard characters and races. Of course, when they wake up as an artifical dwarf, an artifical human, etc.
With that said, I still want everything to feel medieval. No guns, but high sci-fi weapons and magic will be available.
But yes, PCs might wonder if their world is some sort of westworld simulation, but that's not my problem
oh and Transformers is certainly an inspiration.
One thing I have been thinking about are the environmental challenges robots would have. A desert might cause serious issues with overheating, dust, etc. Water might be completely disabling. Rust would be another issue.
Food would be some sort of energon and/or solar energy. I'm not sure what an energon farm looks like, but I'm sure I could tweak a medieval robot society a bit.