Bhagavad Gita · Chapter 13: The Field and the Knower of the Field
Bhagavad Gita 13.21
पुरुषः प्रकृतिस्थो हि भुङ्क्ते प्रकृतिजान्गुणान् ।
कारणं गुणसङ्गोऽस्य सदसद्योनिजन्मसु ॥
puruṣaḥ prakṛtistho hi bhuṅkte prakṛtijānguṇān | kāraṇaṃ guṇasaṅgo'sya sadasadyonijanmasu ||
Spirit, dwelling in nature, experiences the qualities born of nature. Its attachment to those qualities is the cause of its births in good and bad wombs.
Modern context
Spirit, dwelling in nature, experiences its qualities, and attachment to those qualities is what causes birth after birth. The problem is not that spirit lives in a body. It is attachment. A person can live fully in the world without being bound by it, if they do not cling. Clinging is what turns experience into bondage.