Part II - The entity is about to become

The town itself is the entity, created from the children's sacrifice, and has expanded to consume the town, cutting it off from reality. Although it manifests through various means, the entity has remained incorporeal—until now. Fatima’s pregnancy is the catalyst, serving as the vessel for the town, this sentient twisted reality, to take human form. Elgin is right: the baby isn’t Fatima’s. The rotten vegetables began appearing as soon as she became pregnant, intended for her alone, which is why we see them growing only around Colony House, and not in other parts of town.

The Kimono Lady is a manifestation of the town's will. She persuades Elgin to hide and protect Fatima, ensuring her pregnancy—and the entity’s growth—continue without interruption. Under her influence, Elgin hides Fatima, even providing his own blood to nourish her.

As the entity grows, it tightens its hold on Fatima, evident in her craving for rotten food and blood and in her erratic behavior. She is not just pregnant; she’s under the influence of an entity determined to embody itself, corrupting her mind and body in the process.

Tillie is the first to notice Fatima’s pregnancy, but she quickly senses something is wrong and becomes deeply preoccupied. This explains her apparent lack of concern while Nikki fights for her life. The entity sees Tillie as a threat, and when she tries to read Fatima’s cards, it intervenes by sending a crow as a warning. In a final attempt to silence her, the entity possesses Fatima, forcing her to kill Tillie.

As Fatima’s pregnancy progresses, the entity draws closer to achieving human form—and with Fatima now conveniently hidden in the cellar, its birth seems inevitable. This birth wouldn’t just grant it physical form but also unrestricted agency. Once embodied, the entity could manipulate its surroundings directly, feeding even more intensely on those trapped within its domain. It might even breach its dimension, gaining access to the real world.

Can the entity be killed? What would killing the entity entail? And would killing the entity put an end to this supernatural realm?

Other theories:

The children poured their hope into the roots

The town responds to acts of defiance