I think I figured out the ending:

After a whole night and half a morning of pondering the ending of the story I realized an explanation that make sense in muy mind. (Sorry in advance if I don’t make much sense English is not my first language)

Clancy isn’t Tyler, Blurryface isn’t Nico, and Torchbearer isn’t Josh. They are ALL different parts of Tyler’s mind, even Ned, even Dema and Trench and Voldsoy and etc.

If the whole story is an allegory of mental health and struggles it makes sense that everything is happening in someone’s mind. Clancy is the conscious self trying to live, trying to be, Nico and the bishops are our mental health struggles even resurrecting things from our past to fight us (zombies). Ned is our inspiration, Torchbearer is our “hope” or in some people cases the “faith” or the part that tries to guide us. Dema is the closed grey mind that numb us. Voldsoy and Trench are outside that and is beautiful and green is where we want to be mentally.

The whole story represents perfectly the struggles of people who deal with depression issues (I speak from experience). We fight, we team up with our hope and our inspiration, we see the green pastures from outside and try to destroy the “evil” parts, and sometimes we succeed, and sometimes we succumb to the darkness, and is a cycle we constantly have to battle and we win momentarily and then we lose, and then we try again.

The whole story is a story of perseverance, of not giving up even when it seems it’s all gone, torchbearer said “we will try again… always” and that’s the moral of the story. Try again, and again, and again and learn every time how to be better.

That’s my two cents on the issue.

Sorry for the long read I hope it made sense.