। ॥ १२३ ॥
In plain words
So the one who has settled into the Ātman, and taken on its very shape, still looks to everyone like a person with a body. But that is only how he is seen. He is the Self alone, and nothing besides.
Close to the Sanskrit
Thus, the person who becomes grounded in the Self and indeed of the form of the Self — that one is seen as if embodied; but in truth that one is the Self alone.