Answer:
Magical realism is represented in Encanto by reflecting relatable family issues and moments of self-discovery onto the audience.
Examples:
1. The movie starts with highlighting societal expectations from a family matriarch (the Abuela Alma)
2. Moments of self-discovery occur in the main character Mirabel throughout the movie and in Bruno once Abuela (who also has a self discovery moment to do this) forgives him.