Im not entirely sure whats up with the cast. But I think 1 of 2 things are at play here:
1: People are lying and are making themselves sound alot bigger then they really are.
2: Theyre speaking (partly) the truth and have been nerfed by things out of their background (gods, pacts with other entities etc.) or by the tadpole.

Maybe its a combination of these 2. Who knows honestly. Or it could be option 3.
3: Its a jab or joke from Larian about players having grandiose backgrounds while theyre only making a lvl 1 character. Which alot of new players are guilty off.

Heck maybe it could be all 3 at the same time. Someone (or several people) at Larian was responsible for the backgrounds and came up with this. And to make it fit with lvl 1 characters they used the god nerfing them (for Gale) and/or tadpole to make the characters fit while still making them lvl 1 characters, but with a story.

Gives you more interesting characters then 'I decided I was tired of farming for my entire life so I saved up enough money for a longsword and im taking to the road' story thats more plausible for lvl 1 characetrs but abit plain at the same time.