From Ross Goodwin on Medium:

To call the film above surreal would be a dramatic understatement. Watching it for the first time, I almost couldn’t believe what I was seeing—actors taking something without any objective meaning, and breathing semantic life into it with their emotion, inflection, and movement. 

After further consideration, I realized that actors do this all the time. Take any obscure line of Shakespearean dialogue and consider that 99.5% of the audience who hears that line in 2016 would not understand its meaning if they read it in on paper. However, in a play, they do understand it based on its context and the actor’s delivery. 

As Modern English speakers, when we watch Shakespeare, we rely on actors to imbue the dialogue with meaning. And that’s exactly what happened inSunspring, because the script itself has no objective meaning.

On watching the film, many of my friends did not realize that the action descriptions as well as the dialogue were computer generated. After examining the output from the computer, the production team made an effort to choose only action descriptions that realistically could be filmed, although the sequences themselves remained bizarre and surreal... (medium article with technical details)

Here is the stage direction that led to Middleditch’s character vomiting an eyeball early in the film:

C
(smiles)
I don’t know anything about any of this.

H
(to Hauk, taking his eyes from his mouth)
Then what?

H2
There’s no answer.