if this WASN'T intentional, it's kind of sloppy. Imperial City has been unset because of the effects of the Planemeld. It's just crazy enough but plausible enough to sit with me well. I actually really like this explanation, as silly as it is. so IC is technically in a pseudo mundus/oblivion pocket reality? or maybe it's turned because it's literally being un-screwed? Or twisted like a key to 'unlock' Nirn from Mundus. Maybe Molag Bal somehow managed to do some crazy ritual shenanigans to rotate Imperial City slightly specifically because it's an anchor of reality and altering it in such a way would weaken the barriers between Mundus and Oblivion, thus helping to enable the Planemeld. If destroyed, they would build it PRECISELY as it was before. The imperial city is a holy and cherished city that is seen as being an anchor of reality would be cared for meticulously.