In Arcanum none of that is really developed nor explicited.
Right, because
Arcanum doesn’t operate according to consensus. Both technology and magic operate according to consistent laws that are independently studied as sciences.
Too bad Troika's logical fallacies pissed all the nerds off so they went out of business before they could make a sequel that explained everything.
There isn’t an explanation that can make sense of it without rewriting the rules they established. Troika established that magic interferes with physics, to the point of affecting blocks and inclines. The inconsistency arises from magic not affecting people, weather, etc in the same way.
There's no qualitative difference between a steam engine and a beaver dam or even a simple bird nest. It's just iterating on using tools to make better tools.
Exactly. This is a classic appeal to nature fallacy. Science isn’t created, it’s discovered.
At this point, the best explanation I can think of would be invoking gods. In the beginning, there were three gods who created the world. The God of Nature created the heavens, the earth, plants, animals, weather, etc. Then he gave the world to his two brothers to do additional touches. The God of Magic created elves and gifted them with magic. The God of Tech created dwarves and gifted them with technology. They didn’t consult each other when developing their gifts, so magic and tech operated on contradictory rules that interfered with the other.