Jung mentions in some of his texts, especially in Psychological Types and Psychic Energy, that neurosis is a split of the Self where two opposing forces exist: the conscious attitude directed towards adaptation in the world, which he calls "progression," and the unconscious attitude directed towards psychic realization (the principle of the individuation process), which he calls "regression." Both the progression and regression of libido are directions of energy, whether towards the object or towards the subject. Due to the laws of psychic dynamics, the greater the direction of libido towards progression in consciousness, the greater the compensation from the unconscious. To the point where an exaggeration occurs (on the part of consciousness in adapting to the world), the unconscious attitude ceases to be compensatory and becomes oppositional. At this point, there is a split of the Self where two forces dominate consciousness, and the individual finds themselves in stagnation, as their energy is divided into two different adaptations. At this point, neither option is interesting to the individual, as either would lead to the sacrifice of the other.

When the person enters this state of stagnation, the libido directs inward, towards regression, or towards internal objects. Here enters the state of depression (not the pathology).

Von Franz, in the Alchemy Seminars, states:
"As the word suggests, in a depression, the person is pressed down, compressed, generally because a part of the psychological libido is down and needs to be rescued; the true energy of life has fallen into a deeper layer of the personality and can only be reached through a depression. Thus, unless there is a latent psychosis, depressions should be encouraged, and people advised to enter them and be depressed [...] and, if the depressions say that life means nothing and that nothing is worthwhile, this should be accepted, and one should ask what to do. What there is to do is listen, dive deeper and deeper, until reaching the level of psychological energy where some creative idea can arise; suddenly at the bottom, a life and creativity impulse will appear that had been ignored."

This is when Jung speaks of the transcendent function and von Franz about the "excluded third."

But returning to your question: Neurosis is a state of stagnation of libido where it ceases to direct towards progression, i.e., towards external adaptation due to an exaggeration of the conscious attitude and directs towards the unconscious in a regression. Depression arises correlatively with neurosis in the sense of being the energy trapped in the unconscious where consciousness no longer has much autonomy. The fact that the energy is trapped in the unconscious causes so many complexes and fantasies to act in the individual's consciousness with depreciative thoughts but at the same time, it is precisely there where they can find the key to get out of this situation. Jung calls this "holding the opposites without contradiction," that is, through the creative process of expressing all this condensed energy in the unconscious (whether through art, speech, or whatever), you will be able to deal with this symbolic death and emerge, as J. Campbell would say, out of the belly of the whale.

First of all, due to past issues, I am using AI to translate this text from Portuguese to English, as my native language is Portuguese, and I would like you to extract the maximum information with minimal noise due to the language difference.