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The haunted house section of the game is so far the only thing that has been majorly narratively botched as far as I'm concerned, but it's a doozy.
Shadow having suffered under the Royal's plans to use orphans brains for not-adrenochrome-we-swear and bodyhopping nonsense for transferring consciousness becomes just as bad as the people he held a grudge against in the present day by casually bodyjacking anyone who wandered into the house for no reason other than he thinks it'll bring him power.
Easily the worst character in the game and an outlier low in an otherwise solid cast.