E-053, like E-052, was found through one of James' few video games that retells the story so far within our universe, being one of the enemies. It has never interacted with the real world, but they are represented as the person who worked with Wario.
E-053 is a drawing representing Waluigi for one of James' video games retelling the story of what happened to Wario, their brands, friends and co-workers. In the game, it has appeared on the right winddow only. This entity can jumpscare you, but it is not harmful.