I know I'm late to the party, but RE: Village AU where
instead of Lord Donna of House Beneviento being the Lord with lots of experience in making children's puppets, it's Lord James of House Henson.
Yes, I do mean THAT Jim Henson.
Lord Henson's heart is in the right place, cadou be damned, and he's even got a hidden cave full of village children he saved from his new "siblings" and "mother", who he refers to as his "audience". Even when he's got an eldritch mushroom hivemind whispering things in his brain, he can't help but be at least a little wholesome.
Some of the things happening in that section of the game are the same, except for the fact that the newly Cadou-infected Lord Henson is somewhat less successful at being creepy than his canon counterpart. The elevator lights flicker creepily and come back on to reveal...Beaker with a marker halfway through writing "Welcome, Ethan". He turns around to see Ethan staring and "MEEP"s loudly before scampering off through a hidden door in the elevator.
On the other hand, entering the creepy area with the fog, trees, and hanging puppets made the the jumpscare by the Fire Gang from "Labyrinth" leaping out from among the trees way scarier than it should have been, but the menace had mostly gone when the hanging puppets started singing the chorus. (The Wild Gang did try to remove his limbs though, like in the movie, and Ethan was very surprised to find his head can come off without killing him, which led him to believe Mia wasn't telling the whole truth to him.)
Instead of Angie being the psycho doll, it's the (somewhat dilapidated) original Skeksi puppets from "The Dark Crystal". All ten of them, acting like children. (They are technically cousins to the Dimetrescu girls.)
Unlike canon, this section of the game DID have a deathtrap, but the deathtrap was Kermit doing his "Mystery Box" game with the caveat that failure to correctly guess the object would lead to a trapdoor in the floor opening onto...a dunk tank. Ethan stressed himself out about the game, thinking he'd die if he got it wrong, fucked up, and was very confused to be left soaking wet but completely OK.
Edit: The Skeksis aren't the ones you need to worry about. If you ever visit Lord Henson, Wilkins will offer you some godawful instant coffee while insisting it's the greatest thing on Earth. DO NOT show any signs of displeasure at being served instant bean water that's been sitting around collecting mildew and mold since the 50s.
