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Sekiro leans heavily into themes of Buddhism which revolves around the concept of "karma." Much of the afterlife in Buddhism is based around paying your karmic debts, and those who have accrued a large amount of negative karma will pay their debts in Hell, by suffering an equal amount of suffering they have inflicted on others. However, one can alleviate their karmic debt and their suffering through acts of good, which include spreading the teachings of Buddha, by creating statues in his image or by reciting his sutras, especially to others.
The reason why the Sculptor spends all his time sculpting statues of Buddha is in order to pay off his karmic debt. However, the faces of Buddha he carves always have a face of wrath, which implies that the depths of his karmic sin are in fact so deep, that despite dedicating his life to carving imagery of the Buddha, Buddha will not forgive the sins he's committed.
