FNaF is going to have a place in my heart forever. This game is the reason why I started drawing digitally. I still remember those crappy mspaint pictures featuring fnaf characters that I uploaded proudly on my deviantart. Those were the times~
Anyway, Nightmare. Probably one of my favourite animatronics. There's this one theory that I really like. Basically it says that in FNaF 4 we're playing as Michael Afton who is currently working in FNaF 1 pizzeria and is having nightmares everyday (he works nightshifts so-). That would explain why the room we're playing is so similiar to FNaF 1 office and doesn't look like Evan's room at all (and there's even this easter egg when we can hear phone guy). And it would also explain why most of the game we have to defend ourselves from Freddy, Bonnie, Chica and Foxy. Those animatronics weren't really a thing in 83. They were only in a cartoon, but the actual robots in pizzeria were only Fredbear and Springbonnie. But coming back to Nightmare. I was always wondering what was Nightmare representing. Currently many fans see him as Death itself, but here comes my little headcanon.
Based on FNaF 4 is Michael's nightmare theory, I honestly would see Nightmare as Evan himself. I'll explain why. Nightmare is this black bear with some shades of gray. This kinda reminds me of Evan's shirt. He also has a gold hat and bow-tie which would represent Evan's plush toy Fredbear, but also the fact that Evan's soul is trapped in Golden Freddy. But the most important thing is that we can not only see some blood on him (I think??), but he has an actual brain. And last time I checked, robots don't have human-like brains. Those two details can totally represent the bite of 83, where Evan had his head literally squished. And since Michael must feel a lot of guilt, because of this accident, that's why he sees Nightmare in his dreams. Of course, Nightmare wouldn't be an actual Evan (since he's waiting for his turn on XBOX, I mean, Golden Freddy's suit controled by Cassidy), but that's how Michael would portray him. Maybe he would already know that Evan's soul is trapped somewhere, but wasn't sure how Evan feels about him, since he bullied him and caused his death? I dunno.
Of course, this is just a theory/headcanon. I already know that in FNaF 4 we're probably playing as Evan, since there's something in Sister Location that proves it, but I'm not perfect when it comes to FNaF lore and sometimes I just want to have some fun :)