Machine elves as a specific is probably closer to a mass psychosis. Someone named them that at some point, then everybody talks about them, so everybody saw "machine elves" and future people interpret what they see that way because that's what they heard before they tripped.
Really, DMT trips kinda go like an acid trip but you've taken 100x times the dose and died in the process. Reality itself kind of dissolves away and you forget what you are frequently.
In that state, there's a lot going on, with a fair bit of synesthesia and trying to decipher exactly what's happening. Things breath in and out rapidly, but it feels like lifetimes.
Anyway, the "machine elves" aren't really elves... Or machines. Even on sub-breakthrough doses, you start seeing eyes and mouths in the spaces around you, you may even hear voices/singing - IME often a beckoning. Once you break through, those hallucinations have been ramped up and your brain is filling in so many gaps (at this point your eyes will have closed) they come across almost like deities that exist in between time and space. They don't have consistent forms; they speak in tongues / songs that you can sometimes "understand". They tend to be "neutral / neutral", so to speak.
It's profoundly difficult to explain, since language wasn't really designed to capture that state of mind and lacks the adjectives. But someone tried to make something relatable with "machine elves" at some point and it stuck because "yeah, that's weird enough to capture the essence of it".
Some people do take these experiences as more than what they are, though, and act like machine elves are "real" lore or that they are something that actually exists "beyond the veil" or whatever. And now that so many people learn about it well before tripping, they may be seeing more concretely "machine elves". But that's way more... Pedestrian(?) than what I experienced without that bias.