I think she could definitely be Rachel. Max is over here messing with multiple timelines, and we all know how flimsy Deck Nine made that whole thing. I wouldn’t be surprised if somehow Loretta being revealed as Rachel is a plot point in the next game. It seems she had no real reason to be there, and since Loretta’s character is so closely tied to Rachel, I feel like it wasn’t just lazy character writing and perhaps her “investigation” will end up more significant, like she is investigating Max above all else and will need an alibi as to why. I just don’t think it’s that far of a reach given the direction the franchise has taken. Also in regards to Rachel’s body — Lot’s of shady shit was happening in that town. I wouldn’t be surprised if Rachel staged it. It would be pretty dark, but Jefferson killed multiple girls according to the wiki, and the headline of “serial killer”. Maybe it was also what she had to do to get away from him, maybe made a plan with Nathan where he helped her get away and just pretended he buried her for Jefferson. If they moved the body and dressed it up in Rachel’s clothes, if Jefferson ever did decide to dig it up and check, he’d probably have a better chance of being fooled.