This is a mod that adds an improved ACT_DEBUG_FREE_MOVE with first person mode to the game. It's easily accessible by pressing Z + L. Hold down B to move slower and press L to exit Noclip.
I did eventually find out that the mod is used if anyone is the host or admin in a server. So if you want your friends to have access to it, the host has to give them admin privilages, then it works.
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