Psychonauts 2 has an invincibility mode toggle as one of its accessibility features.
The confirmation of this comes from Double Fine's Twitter account, which Tweeted its own version of a meme that says if you did something in a specific way, you still did it. Xbox also Tweeted a similar meme saying, "beating the game on the lowest difficulty level is still beating the game".
Double Fine's version of the meme was a little more on the nose and makes reference to a specific accessibility feature in Psychonauts 2. It said, "If you beat Psychonauts 2 with the invincibility toggle on, you still beat P2".
After the initial Tweet, Double Fine went further into explaining why the game has an invincibility mode toggle, "All people should be able to enjoy games. All ages, all possible needs. It's an ongoing and important process for our industry and a challenge we need to meet. End of the day? We want you to have fun, to laugh, to experience a story that affects you. On whatever terms you want".
Interestingly, Double Fine has actually already detailed some of these accessibility features in a YouTube video a couple of weeks ago, although this Tweet has brought more attention to the invincibility toggle and Double Fine's attitude towards accessibility. Double Fine also confirmed that these features won't disable achievements in the game.
Some of the other accessibility features that will be included in Psychonauts 2 that were shown off in the YouTube video include the aforementioned invincibility toggle, a narrative combat mode that lets the player deal more damage, and a mode that disables fall damage. Fall damage wasn't present in the original Psychonauts, so it's interesting that it has made its way into the sequel.
Besides these accessibility features, Double Fine also recently announced that Psychonauts 2 was made with no crunch, allowing itself as much time as it needed to make the game. It looks like the studio is committed to both the people playing the game and the ones making it.