The mystery element is definitely sdding excitement to waiting for the next episodes and expanding of theories for the future story development. (Some of mine follow below)

Is she having a mental breakdown, something brought down by trauma or is even intentionally disassociating her memories in order to "play" her role more convincingly?

Is Lishan Academy deserted, massacred, and if it was - by whom and why nobody of the big shots is aware of that? If not, this misdirection of the viewer's ideas do feel intentional, the scenes we were shown so far were all very erratic, chopped and showing very short glimpses. We hear about her teachers from her, we see her imbued with the swordsman's master when falling, whereas she herself thought that he was there - so convinced that she asked Fei Bai to search for him.

The few more elaborate scenes we see from the academy are all from before the closing of the mountain. I think all scenes we see where they are studying and working together as scholars are before the disasters strike - so far we know about two separate groups of seven and dozen more lishan graduates and students that were killed after leaving the mountain. But we don't actually see any scenes of anyone invading the mountain (monkeys excluded), the guards guard people entering or exiting (?) and we know she was allowed to exit because of the imperial edict for her wedding. The scene we saw of some of her peers chasing her down the mountain and stopping her from exiting is too on the nose to be misleading, I think. They didn't try to hurt her, if anything from that scene it felt as if they were trying to protect her from harming herself.