The game takes place in a world similar to ours, with realistic humans, while the minifigures live in a Mouse World.
On Rex Fury's mugshot, we can see that the minifigures' height is measured in millimeters rather than santimeters, meaning they are the same height as in real life. If the game took place in a world where everything is made of LEGO, you'd assumed otherwise, but there's also the fact that the game takes place in LEGO City, which also has a LEGO shop. It would only make sense for both the LEGO brand and living LEGO figures to exist if they were created by normal humans. It's just that they don't know that there is a society of living minifigures, but how exactly they came to life is another story. The game is a Stealth Prequel to the LEGO Space line, and Forrest Blackwell is the founder of Blacktron.
Come on, guys. Giant B logo? Space base? Black spacesuits for his goons? And he remains in space at the end of the game. Perhaps he crashed back on the Moon, where some of his henchmen remained, and together they reformed his "empire" into what eventually became known as Blacktron. Chase McCain is the same as Agent Chase from LEGO Agents.
After the Agents successfully defeated Dr. Inferno, they had disbanded and went their separate ways. Chase had decided to become a police officer and after dyeing his hair out of personal taste, enrolled at LEGO City Police Academy. This would explain his combat skills, being able to drive any vehicle and free running. As well as him being a master of disguise and his costume abilities. Vinnie Pappalardo is romantically interested in Chase
Vinnie is shown to have a lot of faith in Chase, even nicknaming him Chasey and declaring him as the mafia don's go to guy after stealing the fireboat. Chase is also openly flustered after being complimented by Vinnie, the latter possibly hoping they could be a little more than just partners in crime