It’s a scientific fact that physical matter does not exist in its physical form when unobserved.
No, it's not. The quantum field and the quantum wave exist whether or not you observe it, only the particle behavior changes based on interaction. Note how I specifically used the word "interaction", not "observation", because that's what a quantum physicist means when they say the wave-particle duality depends on the observer. They mean that a wave function collapses once it interacts definitely, not only when a person looks at it.
It certainly invalidates physical reality as the “source of truth”, so to say
How so, when the interpretation you're citing is specifically dependant on the mechanics of quantum field fluctuation? How can physical reality not exist when it is physical reality that gives you the means to (badly) justify your hypothesis?