The major question of the story that we are now asking:
Why, exactly, does Carlo never "wake up"?
[long post]
[Spoilers ahead]
Well, simply put - Because he is dead.
OK, that seems like too obvious an answer, but I'll elaborate, and bear with me here. I want to recap some elements first so you know where I'm coming from, but I'm also trying not to completely explain everything because that's way too hard and would be too long.
[Currently, we don't understand everything about the story or its meaning. Because of some of the shrouded nature of the lore and narrative, it leaves much mystery. But from viewing these questions and the story from a thematic standpoint, something unexpected and really cool happened. I found that the story and the lore opened up in reverse.]
The easiest way to explain the plot (in my opinion):
It was my impression that Geppetto never “started” the puppet frenzy. The puppets were NEVER breaking the grand covenant, interpretably they are protecting humans by stopping the spread of the petrification disease, it’s just that everyone in the city was infected by that point.
Now with the puppets killing everybody in a city where everyone was infected (ergo being the result of the disease) Simon can go around harvesting all that ergo and Geppetto presumably plays him by letting Simon collect the Ergo first, and then sending P to kill him. [again, these details may not be completely accurate, but bear with me here]
Why create P in the first place?
He's made in Carlo's image so to speak because Geppetto hopes that Carlo's spirit will awaken. This is also why P is never bound to the covenant (it seems that not being bound to robot laws makes puppet egos awaken faster, since awakened puppets can break the grand covenant). So that is the two functions of P, to destroy puppets for ergo to harvest and so Carlo's consciousness can restore. I was just guessing that the arm of god was enough to get Carlo to revive, and Carlo's mental spirit reviving would be helpful but not entirely necessary. But for reasons we don't understand, Carlo never does regain consciousness.
Geppetto bitterly tells us that we don't seem to have inherited Carlo's memories. There is no big moment where Pinocchio or Pino or P reawakens, fully, as Carlo. He isn’t treated by the story as him. During the course of the game, P struggles to forge his own identity, to become a real boy, despite starting as a copy of the original. It’s a very fitting parable for the genre identity of a soulslike.
However, there are other successful re-incarnations of people through puppets, namely Sophia at the end of the Rise ending. We ask, for consistency's sake, why are puppet-form Romeo and puppet-form Sophia assumed to have retained their original identities, but not Pino? This is just my personal interpretation of why Carlo just couldn't or doesn't wake up. It isn't really based any lore or deduction from story details, this is from more of a philosophical point of view. And it isn't just the luck of the draw.
I had some initial thoughts about Carlo's failure. Romeo was made with intention of continuing to fight against the disease, as it's told that he "made a deal with the devil". Sophia may have been a special case, as she is a listener (Arlecchino even refers to her as the goddess in the tower), she may have had an ergo identity so strong that her essential self could retain this process. But either way, the implication is that Pino may have been able to recover her not long after that final fight. Look at the nameless puppet. The state of Carlo's body is so poor, that more than not his body seems to have been replaced with puppet parts. I think the implication was that Geppetto had been replacing parts as they rotted away. Maybe he had simply been dead for too long. But again, this isn't exactly why I think he couldn't awaken.
Simon and Geppetto
Lies has two main antagonists, although one isn't completely revealed until the last section. Both Simon and Geppetto are the perpetrators of Krat's destruction, but for what seems like different reasons. Simon is trying to be reborn, and Geppetto is trying to revive his dead son, Carlo. Interpretably, they are both trying to become Gods. Simon by grasping the supernatural, cosmic power of one, and Geppetto by raising the dead. They have destroyed Krat in their attempt to become a god, or more succinctly put, attempting to become God, singular. Geppetto's goal is, in essence, the same as Simon's goal - Because bringing back the dead would make him God.
That's why it seemed all so confusing. Haven't Geppetto and the alchemists already raised the dead, as Pino does at the end of the Rise ending with Sophia? Sophia, Romeo, and Carlo were all afflicted with the disease. Their Ergo were all made into puppets, but there's a minor but important distinction here. Sophia is still alive in her condition and actively suffering, this is the reason why she asks us to end her life. It seems as though Romeo lost his friend to the disease, and then made a "deal with the devil" to continue fighting, this implies being made into the king of puppets. We collected Sophia's ergo while she was alive, which we then used to animate the puppet. So the three of them were afflicted with the petrification disease. Sophia perished, Romeo perished, but Carlo died.
Now if we see the sand memories section of the beach, the stalker's words start to gain some clarity. If Carlo died from an incurable disease that the stalker couldn't prevent, why is she too late? Perhaps the goal was never to "save" Carlo's life. She laments; That she was too late, NOT to "save" him, but for him to be able to be restored. The stalker seemed to understand that whatever procedure needed to be done would be useless past the point of death.
I have to admit that there was something that I thought could override my theory. It seems as though the alchemists already were able to bring back both Champion Victor and The Eldest of the BRB, and from the dead no less. We read from notes in the Grand Exhibition that Victor had caught the disease, died to the despair of his adoring fans, but then miraculously made a comeback somehow stronger than ever. But maybe - he had only appeared to be brought back from the dead to the public, as Victor sought the help of the alchemists. And when it comes to the Eldest in the coffin, I'm wondering if he was actually only mortally wounded, leading the brotherhood to consult with the alchemists. [The way he was carried out by his brothers too (shouldered on either side) isn't typically the way you would expect people would handle a dead person]
Mirroring Sophia, Romeo, and Pinocchio, who were made into puppets: There is Champion Victor, The Eldest, and Nameless Puppet. We can see the former three as Geppetto's method of "cheating" God (cheating Death), and the latter three as alchemists' method. Only "Carlo" has a form in either one - The Nameless Puppet and the player, P. The Nameless puppet appears to share a similar undead quality with Victor and The Eldest of the BRB (including the tubes). We know that the collected Ergo can animate puppets, They are puppeting around their own dead bodies.
I feel like the Nameless Puppet tells us in a poetic way that Carlo is gone. My thoughts on this are more abstract. Again, this isn't from a factual analysis, but more of from viewing the Nameless Puppet itself as a metaphor. The Nameless puppet has qualities similar to the other undead bosses, yet the game doesn't describe it like it does Victor and the Eldest. It's not a body. It is a puppet [Human on the outside, mechanical on the inside - the inverse of our protagonist]. And straight in the text, we are told this is "The Nameless Puppet". But we know who Carlo was. His name was Carlo. We split open its head, and there are only cold, mechanical parts, instead of what we in the modern world now regard as the very most essential self (the brain). Because there was nothing to recover, there is no one there. Carlo's spirit had long, long since departed the world.
We are also told through one of the game's narrative devices that the Nameless puppet was the first puppet fitted with the organ. Ostensibly, Carlo's body was being prepared for whatever procedure that needed to take place, but Carlo died before that could happen (perhaps thankfully), and Geppetto pushed forward with his plans anyway, perhaps past the point of no return.
There are two forms of revival and we represent one of them, as in, there was the puppet form of Carlo and the undead form of Carlo. Presumably, the undead form was incredibly destructive, and thus stored away; We are the second try for Carlo's rebirth, this time in the puppet form, but we cannot even wake up without the aid of Sophia.
Lies, God, and the Finality of Death
But doesn't Geppetto actually succeed in one of the endings? Simon fails to become a god, (well, presumably only because we kill him in the process of doing so) and then we confront Geppetto. If we hand over our heart, Geppetto actually does revive Carlo. We see the resurrected Carlo, but with one simple smile we realize this isn't the Carlo the game has been leading us to believe existed. This ending leaves us with distrust and unease rather than a sense of peace and resolution. Simon fails to become a god, and at the bad ending - even if he "wins" - the game makes us wonder if So does Geppetto. No matter what, Carlo could NEVER be truly, and in both senses of the word, honestly, be revived.
[Simon Manus - like Simon Magus, the biblical figure who tries to buy into the supernatural power of God. And Geppetto, of course alluding to the 1883 italian novel The Adventures of Pinocchio - a puppet master, a creator indeed, but of wooden imitations of life, and a poor imitation of God]
So, why I think Carlo could not wake up? Because whatever needed to happen could not be done after the actual point of death, and Sophia and Romeo's hearts were both transferred before they actually died. His spirit had long gone from this world. Krat has methods of eternal life, but these transfers happened while they were still alive. While the alchemists and Geppetto could certainly cheat death (as we maybe even would with modern day medicine), they could not defeat it. Carlo can no longer wake up, Carlo can never wake up again, because he is dead.
