What are the odds that these erotic stories are just some GF employee's fanfic stored on a work computer, and everyone just looks the other way because the guy who put them there has seniority? Or that it was simply an unfortunate exploration into the creation of more ties to real folklore within the series?
Furthermore, how do we know this stuff wasn't inserted by the leaker as a joke? ChatGPT could have written it.
We don't have any context for these stories. There's no concrete indication that they are intended to shape a conceptual framework for the series. Even the Canalave Library and the Froslass from PLA are only vaguely connected at best, and could just as easily be explained without these stories.