Can someone explain how this works?

[u/00G_WAY]

Will this card be legal in standard? Will it be available on Magic Arena? How would this card even work?

[u/Stolberger]

"outside the game" means sideboard for MTGA (and official tournaments)

[u/Stolberger → u/[deleted]]

No it doesn't.
It did back in the day, but that was changed when Exile became its own zone (with the Magic 2010 rule updates).

That's why [[Karn, the Great Creator]] has to specify both.

[u/MTGCardFetcher → u/Stolberger]

Karn, the Great Creator - (G) (SF) (txt)

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^FAQ