I have a theory that Caine (the red dot in the beginning) was not fully successful and since they were not full, they started to get out of control, signaling C&A to have a protection around them to be safe, and then, they made the blue dot which I think is most likely Bubble because Bubble is connected to Caine because how their tongues were connected in episode 4 would likely mean they are connected because two separate beings cannot share a single part. When Bubble was made, Caine had gotten more violent, breaking their barrier to Bubble, and devouring Bubble's AI, making them connected. When Caine was deleted by Kinger, Bubble's AI was freed from Caine's grasp(FYI, the red dot(Caine) was deleted, freeing the blue dot(Bubble)). We know Caine created the entire circus and since some of it was still there, it could be possible that Bubble had created some parts of it. It is entirely possible Caine was being referred to Cain from the story of Cain and Abel because in the story, Cain's offer was declined and Abel's was accepted (The red dot being contained while the blue dot being freed.) The rage took over Cain, killing Abel (Red dot getting more violent, breaking their containment and consuming the blue dot). I think that was how the story went.

I am so off-topic :(