Off topic:

I played Pathfinder Kingmaker. There it is explained that fey are creatures native to the first world, a chaotic plane. From the description I think powerful creatures can shape it almost at will, but it's more stable than Limbo where a wrong thought can undo the reality around you. Fey are "reborn" after some time when being killed in the first world, so they are often more careless than most mortals. Gnomes used to be fey a long time ago, but they lived in the material plane for so long that they lost this ability and became normal people.

Is this also true in DnD lore or is it different?

groovy Prof. Dr. Dr. Mad S. Tist groovy

World leading expert of artificial stupidity.
Because there are too many people who work on artificial intelligence already :hihi: