Just saw someone complaining about the Newhart ending from 0611 being mockery of people who ship Nandermo and frankly I can only imagine that account is someone who's under 20 bc that is not what mockery/rejection of queer ship fans looks like. You were in preschool when BBC's Merlin came out, you don't know. S6 and finale spoilers below.
The point of the Newhart parody ending was to provide an ending for fans who just wanted WWDITS to stay a goofy status quo sitcom. It's answering the black and white footage of the vampires in the 1950s. The sitcom status quo is a famously really hard trope to work with. The Simpsons is literally still struggling with it - decades of skilled comedy writers have never defeated it. It's a commentary on being satisified by the media we consume. The vampire can never fully be satisfied, no matter how many lives she consumes. The status quo can never be broken no matter how many episodes it attempts.
The 1980s trope of 'it was all a dream' happens in The Bob Newhart Show, it happens in St. Elsewhere, it happens in Dallas. They aren't mocking a queer ship, they're mocking sitcoms and how they've been hamstrung by format in terms of the story they can tell. Assume they did pursue Nandermo unambiguously, onscreen. It would be legitimately too dark for a sitcom. Or conversely, too hopeful for a documentary.
The other generic format choice restricting them is the documentary, because everything the characters do in the show is them being watched by a group of strangers with film equipment. None of their behaviour is wholly real. The entirety of the finale is Guillermo realising his behaviour will change when the crew leave. His behaviour has been influenced by the presence of cameras, and it will happen again. For the first time in six years, he's going to experience actual privacy, and there will be scope for him to express things he has deliberately suppressed with the cameras on. In the first episodes of S5, we saw him get increasingly frustrated with the crew, calling them vultures, as they tried to get the story on what happened with Derek. He's ready for his privacy back, and space to change, but the vampires live by sitcom rules. They aren't prepared to change, or at least, he isn't confident about it.
What We Do In The Shadows (2019-2024) is restricted by two specific genres and their conventions, and the first two 'endings' - the dream sequence and the switching off the cameras - represent exiting both of those genres before any significant radical moves can be implied for Nandermo.
It's a sitcom, therefore the central couple must be in perpetual will-they-won't-they (Friends), the gays must be physically chaste (Modern Family), and the status quo must be maintained (The Simpsons). Once the sitcom is ended via the Newhart ending (which positions Guillermo and Nandor as a married couple, that's not a small thing at all), the documentary tropes can close out.
Documentary tropes are a little harder to pin down, but generally the story should end with Guillermo truly moving on and leaving in a poignant and somewhat tragic way.
Guillermo's narrative thread throughout the documentary version of the show is about his identity and relationship with Nandor. He gives the cameras a big show of finally saying goodbye to Nandor, going on to be a new version of himself, and waits until the crew begin to derig before acknowledging again that a documentary is performative, and he intends to continue their relationship. The documentary format means intimate moments must be captured. When the documentary ends, the intimacy may be private. That's why we don't get a Nandermo kiss. It's allowed to be private now.
Guillermo is sad throughout the finale, yes, but I would argue he's actually mostly stressed, because on one level he understands that the show must commit to one of two trope endings. The sitcom, the repeating lives of the vampires where nothing matters and you can be hypnotised to believe there was nothing deep about it. Or the documentary, where he is forced to tragically leave forever, having learnt a valuable 16 year lesson, perhaps meeting again for a 'where are they now?' Twenty years later.
He thinks he has to choose in under an hour, between the endless sitcom cycle the vampires find natural, or walking away with the humans who made the documentary to capture something ephemeral and temporary.
They do both, and then Nandor and Guillermo get what is clearly the ultimate ending. It's not formatted in such a way that you choose between endings. They're not alternate endings, they're subsequent endings. It doesn't have multiple endings like Clue, it has multiple endings like The Return of the King.
And maybe Guillermo and Nandor don't kiss on the mouth and declare their love for one another, but the camera crew is still leaving the room. What they do do is agree to stay together and work together on something to make themselves and/or the world better. Then Nandor invites Guillermo to share his pseudo-bed and disappear into a private space he has created in secret for the two of them. Even phrased matter of factly that's romantic. Someone flippantly called it 'the gays getting sent to super hell' and wow way to deliberately miss the point. Nandor never follows through on big projects, but he built a miles deep tunnel under the earth so he and Guillermo could at last be alone away from a huge documentary crew and roommates with super hearing. That's beautiful. They don't owe you an onscreen kiss to prove they're in love. They (Nandermo and the show producers) don't even owe you representation, and if you think otherwise, you've not bought into the premise of the show. You are the voyeur watching the documentary, the fan watching the Ross and Rachel (Nandor and Guillermo have been compared to them by the cast).
The whole point of the endings is that they moved Nandermo outside the unreality of TV genres. Not a sitcom will-they-wont-they, not a tragedy within a documentary, just two weird guys in a coffin in a hole in the ground, doing whatever they want because nobody is watching and judging.
They didn't make Nandermo canon, they made Nandermo real.
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