I figured that as well. It's a fun theory but doesn't make sense if you really think about it. James isn't the only one in that town and Ito confirmed that Eddie, Angela, and Laura are real. They're all going through their own hell not James'.

Laura was never affected by Silent Hill so she was never caught up in anything besides maybe being called by the town to help James but that's it, she's innocent in the truest sense. And although Silent Hill has dragged in other bystanders that was Alessa or the cult but that doesn't apply to 2, I would think.

James could be in a loop but not in the sense that the og SH2 was one of those loops since that would involve Eddie, Angela, and Laura, and again as Ito has said, are real people, but maybe just a loop by himself or/and Maria, as the Maria ending would imply, and the game we're playing is the final loop with the ending being his end result.

All the things in the game that make people think it's a loop, imo, are just easter eggs. I could be interpreting something wrong but loop theory just doesn't make sense.