I've been thinking about the whole reincarnation thing and with how Fromville never really tells you the truth, only what you want to hear.
We're assuming that the monsters that come out at night are previous inhabitants who killed their kids to live forever. What if that isn't the case?
In the latest episode, we learned that nightmares come to life when the dreamer dies. What if the monsters were the nightmares of a inhabitant from the 1978 cohort. The monsters are dressed in the clothing of 1950s to 1970s fashion. Now, it's entirely possible that the inhabitants of the town were building mainly from the 50s to 70s when they all died except for Victor and it's possible that the monsters s

