She says it as part of her incantation to cast [Theos's] Ultima, which is a callback to Lahabrea's casting of the spell after the first fight against the Ultima Weapon, both using the Heart of Sabik as a catalyst.
Given there's no true divinities in XIV's setting (that we know of, yet) and all souls return to the Underworld / Aetherial Sea / Lifestream, they really should know better, but that line was probably written before this much worldbuilding was done so...Originally Posted by Lahabrea / Athena
On topic, like all remnants of Amaurotine civilization Pandaemonium was more than likely destroyed either in the Final Days or the Calamities on the Source. It might be possible to find some weathered ruins on some of the reflections, but despite their superior construction quality even Amaurot itself was in extreme disrepair on the First. Granted that was underwater, but even so.