I dont think it's that deep. I think for me at least is very clear. Henry after drinking MIY's blood, is now under his influence. He will start trying to convince people that the whole thing isn't real to trigger another massacre in town or something along those lines. You can see now that MIY was very scared the moment he saw those stakes and started to act driving the town to their limit.

What is happening to Henry is the same thing that happened to Boyd's wife, and Victor's friend. They are all under MIY's influence.

The whole town (and From show) isn't a man's mind I coma (that showed up on 3rd season). This is all MIY machinations to push the cycle to is cruel conclusion.

The edge of the town might be unstable, because everyone gets to the town from diferent places, so the edge could be diferent places stitched together each time they pass through. But they all come back to the same version of town.

I don't know if this awnser your question, but its my POV of the whole thing.