It might be a stretch, but i think wifies' possessiveness and protectiveness comes from affection not clearly/properly reciprocated. In episode two of unstable, wifies sacrifices himself for parrot so he can uncover the "secret" of the unstable smp, probably not expecting anything in return. Then, Parrot risks his life and does everything in his power to get Wifies unbanned. After that, there's a shift in how Wifies sees Parrot. Wifies has most likely never met someone who would risk so much for a person he barely knew, which was Wifies at the time. Wifies was a cause that Parrot made up in his head. Since they weren't so close at the time, one would think Parrot was risking his life for absolutely nothing, which is something that the current Wifies would absolutely hate. Ever since then, ever since unbanning Wifies, Parrot has been dragged into danger, after danger, after danger. And maybe, overtime, a feeling of immense guilt and overwhelming admiration for Parrot grew in Wifies. He feels that he was the reason for getting Parrot dragged into danger, but he also really admired Parrot's view on things and his resolve. This leads to him unknowingly, subconsiously "apologizing" to Parrot by sticking by his side no matter what, and doing whatever he can to help, even if it means putting himself at the brink of death for Parrot. Wifies knows deep in the back of his mind that it's all his fault that Parrot has to go through this. The guilt was eating away at him slowly, and he felt that the only way that he could "repay" Parrot was to risk his life for him just like how Parrot did for him when he got chunkbanned. And the overwhelming affection? It twisted into desperation, a desperation to see that affection get reciporcated by Parrot, which never really happens. Parrot also cares for Wifies, of course. Wifies even became one of his closest friends and they always stuck together. But because of the cause Wifies made up in his head, the cause that maybe it was all his fault, Wifies was secretly on an entirely different level of loyalty and affection, unbeknownst by the both of them. In Wifies' mind, Parrot doesn't feel "close" to him despite Wifies wanting Parrot to be close him. To Wifies, Parrot (or rather his affection towards Wifies) is something so close yet so far out of reach, as if his never ending guilt created an imaginary chasm that Wifies felt he had to cross to be "accepted" by Parrot, This makes Wifies' guilt and desperation to be acknowledged and "forgiven" by him grow stronger every day. He finally reaches his limits in the End dimension when he had no way of being able to help Parrot. He was about to die, and Wifies wasn't able to do anything about it. It drives him crazy, and a sick "realization" blooms out of the growing weeds of guilt and desperation: the "true reason" why Parrot wasn't reciprocating Wifies' over-the-top affection was because Wifies wasn't enough. When faced with real danger, Wifies was nothing. And he felt that he was someone that Parrot couldn't rely on.
From that realization grew anger and helplessness and self hatred. From that realization was when the Director woke up trapped and powerless in the body of Wifies, having nothing but anger and hatred for him. For himself.