It's called "Astral City: A Spiritual Journey" (original title: Nosso Lar).
This movie is really interesting to watch with the knowledge about the death traps in mind. I now recognize things that I didn't recognize before:
First of all, the purpose of the Astral City is to send souls back to Earth, just like the death traps do. And not only that, the whole society in this city is centered around rules that highly regulate contact with Earth. It works like a cult that utilizes guilt to control people, and the goal obviously is to make them obedient.
But there's more, because the Umbral (the hell dimension) has the exact same purpose: It's there to control the souls. If a soul is disobedient, it's sent to the hell dimension to "cook" it. That's why the protagonist stays there for years before being allowed into the city. Just ask yourself: Why did it take years to get him out?
The movie tries to sell hell as a place you choose yourself because you can't forgive your sins. But that's obviously not true, and you can see that with the character of Eloisa. She tries to get back to Earth because she loves her fiancé. This is not a sin at all, but she still ends up in the Umbral. This shows us the real purpose of this hell dimension – it's there to punish souls who just want to be free.
The city then "rescues" the souls and brainwashes them into acceptance of the forced reincarnation cycle. André, the protagonist, even decides to stay in the city to become a "spiritual healer", which in reality means he works for the death traps.