"I think the client/lib folder should not be needed. Please explain why PeerJS and other dependencies were copied into this repository."
I can remove Peer.js, also, I moved libs to project for two reasons.
To prevent the problem that happened with Clay.io happening again (CDN no longer hosting)
To not use their bandwidth when pinging from localhost well using the project / testing.
Clay.io disbanded its api, so I found an archive and set it (game.html) up to load the archived api.js as a local file.