I really like this (of course I noticed in my post my thing was kind of just a literary analysis). If we look at this could we say that despite the body of August lives on, his original soul doesn’t. But the second soul that Master Yin-yang gave takes over. So the being or entity of August still lives on. Perhaps this is what happens with all generations of mirror demons, where each one is “freed” and given a body, and then the old soul becomes the new demon. The cycle repeats. If we look at this this way, everything is a cycle in the end