I mean, it's darkly hilarious. Like a lot of this shit is.
Yikes, I'm gonna need more jizz-looking gloppy breakfast to wrap my head around this, but I get you with the alternate Derleth. It seems like the experiment snapped - or there's just some aspects of it they can't control, like the real world. If you try to control everything, something's gonna slip through the cracks eventually.