Re. making sense, in this case, I would ask whether respawning is purely a game mechanic or whether there's an in-universe explanation for it that would translate well between media. For instance, if respawning is based on returning to a save point, well, there are no save points outside the game, so that wouldn't work. If the character is, say, a sorcerer with the ability to create an artifact that acts as an anchor for their soul that effectively resurrects them if they get killed, that would work, because the ability is tied to the character, not the game environment, you see?

I'm guessing the Minecraft character has access to Totems of Undying? Something dependent on an in-game item like that, which a character can't make themself, might or might not work, depending on how hard the item is to get in-universe and how often the PPC enters that universe.

An aside: I think Minecraft beds fall into the category of save points, but OTOH it could be funny if an agent automatically appeared in the last place they slept if they died. Don't sleep on missions, that place might not exist next time! The "sense" in making sense can be one's sense of humor. ^_~

Anyway, assuming there is an in-universe reason the character won't stay dead that will carry over to the PPC, the most important thing is what OrangeFox said: characterization.

In most cases, the test of whether a concept is good or not is less about what it is and more about how it's used. Even a beautiful princess with a cute animal friend isn't inherently a bad idea; it depends on whether or not she's interesting to read about. And what makes a concept interesting is the degree to which it has a logical impact on the character and the course of the story. If key traits are used as window-dressing and don't actually do anything; or if they do have an impact, but it strains belief (and not in a funny way)—that's bad. That kind of disconnect between telling and showing contributes to making a Suvian a Suvian.

Not that every little detail about a character has to have an Important Story Reason behind it, of course. Just talking about core concept here. {= )

~Neshomeh's two cents.