The Book is located on a table after you go through a doorway and head downstairs in Bendy and the Ink Machine.
Exit the pedestal room and take the left hallway. Go through the short hall on the left, then take the stairs straight ahead through the doorway down. On the table off to the right there’s a Book labeled The Illusion of Living. Don’t forget there’s also a clock-in machine that’s used for saving your progress here.
To return to the pedestal room, head up the steps, straight through the hall, take the right path and it’s on your right.
Place the Book on the first pedestal to the right.
