Bhagavad Gita, Chapter 9, Verse 11

Unaware of My higher state, as the great Lord of beings, fools disregard Me, dwelling in the human form.

Real presence gets missed here, not because it isn't real, but because it isn't recognized for what it is.

This names a real, specific failure, seeing the form without seeing what's actually behind it. The gap is described as one of perception, not of Krishna's presence itself.