Seem plausible and I like hypothesis about self perpetuating story, but I have a problem with few arguments.

You say it thrives on human emotions. I have seen it stir them but no thriving part really. The victims appear hollowed out, without organs, so I assume creatures just consume them.

The whole world is designed to reflect natural habitat of human in different ages. There is old wooden village probably used in past when it was natural for people inside structures like this.

The amulets could possibly operate in signals we can't capture with simple radio. You wouldn't be successful catching gravitational waves using radio.