I think he’s just showing off his power to Dante, and creates a sort of dimensional portal to somewhere within the Underworld where he can fight the son of Sparda. As an oppose to genuinely creating a Universe.
I think it's because as we learn in DMC3, Mundus in DMC1 is dead, or so we think....? Mundus in DMC1 was using vessels of bodies or characters in order to show off to Dante that he has the power, and by the end of the game, he creates a dimensional portal to fight the son of a Sparda.
There is and there are a lot we don't know about Mundus and his status going forward. So, in DMC5, just assume that Mundus is alive.
Personally it seemed to me that Mundus’ powers are moreso in the demon world/realms/plains (whatever you want to call them). Not to say that his powers aren’t to be reckoned with even in the human world, but I do like the thought that it’s somewhat akin to DmC Mundus where his powers are stronger the closer he’s connected to Hell.
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