If you've ever played with kids more than once, you'll probably encounter certain toys that have a specific character attached to them, with a name and personality that stays fairly consistent throughout different playtimes. You may also be familiar with the very faulty and inconsistent storytelling kids use to spread out their imaginations: at some point, character A might go through a whole "storyline" where they end up losing their house, getting divorced, dying or any major life event that should have ample consequences and then, by the next playthrough, the kid is so fixated on a new scenario they wanna play that the "storyline" is dropped like it never existed, only to show up whenever it is relevant to the scenario the kid is playing through or completely changed halfway through; basically, the character's life is changing in real-time as the kid decides what they want to happen. I say all this, because I really like (in a "this is a horrifying concept" way) to think that this is basically what every citizen of Hatchetfield has to go through. At some point, the Lords in Black decided the city would be their playground, they had all these new toys with pre-written explorable storylines to play with, and now they are just putting them through scenarios they think would be fun and molding the world to their desires. Every "play session", the citizens of Hatchetfield get "reset-ed", falling into whatever role they are playing in the storyline at hand, changing their memories, stories, wants and needs to fit a new narrative until the Lord in Black playing gets bored and it's someone else's turn to play... like a purgatory version of a Sims game, where technically people can made their own decisions but is it even free will when all your traits are specifically chosen for you and all your options are limited to a certain number of programed actions? a sims game, where everyone is unknowingly just a pawn whose every though, action and decision can be modified at any time, erased at any time, made completely nonsensical at any time... all for a cosmic being's amusement.
It's also fun (in a "this is a horrifying concept" way) , through this lense, to imagine that the Lords in Black aren't even necessarily evil. There are no stakes for the Lords in Black during playtime, they are just doing shit in order to entertain themselves, seeing every person, animal and plant as an object as a literal toy whose whole purpose is to play their roles.
It's more complicated than that, and there's a lot of truly fascinating lore to dive in specially through characters that are able to break the mold like my beloved Miss Holloway, and I have (many) more thoughts but I feel like this meme right now so that's all you're getting