Cloud acts like Zack Fair due to a combination of Mako poisoning, Jenova cells' influence, and the severe trauma of witnessing Zack's death, which collectively led to Cloud's psyche fracturing and him adopting Zack's memories and personality traits.
Breakdown of the Contributing Factors:
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Mako Poisoning: Exposure to high levels of Mako energy had a significant impact on Cloud's mind. Mako contains condensed memories and experiences.
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Jenova Cells: Cloud was experimented on with Jenova cells, which are capable of altering a person's memories and sense of self. Jenova's ability to mimic others further blurred the lines of Cloud's identity.
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Trauma: Witnessing Zack's sacrifice and the overwhelming trauma of their escape from Shinra caused a mental breakdown. Cloud's mind couldn't process the events correctly, leading him to create a new identity based on Zack's memories, combined with his own fragmented recollections.
How It Manifested:
Cloud essentially created a composite persona. He unconsciously pulled Zack's heroic stories, SOLDIER training, and confident demeanor, merging them with his own suppressed desires and memories of wanting to be strong and respected. This resulted in Cloud believing he was a First Class SOLDIER, when in reality, he was never truly one. He pieced together Zack's experiences with his own, crafting a false history to protect himself from the painful truth.
The Result:
This combination of factors led to Cloud's adoption of Zack's personality and memories, creating the persona he initially presents in Final Fantasy VII. This fabricated identity served as a coping mechanism to deal with the trauma he endured. He effectively replaced his own weak and insecure self with the strong and confident Zack.