This really reminds me of interviews with game developers, and the contrast you see when comparing a western developer being interviewed with a japanese one.
Western directors will waste half an hour talking about what flavor of the year theme they wanted to communicate, what you're supposed to feel, what they hope you take away from it, what personal changes in their lives motivated both the inner and outer journey of the heroes, and whatever the fuck else. But then you read an interview for some of the greatest jp masterpieces the medium has ever seen, and the director says "we thought it would be fun, our goal is for our users to enjoy playing the game."
Haachama's schizo lore was not in any way well written. It was basically an endless loop of the same shit happening every episode without any hint of metacommentary about said loops, it was just creatively bankrupt. And it was still far more interesting than this could ever hope to be, simply because it was born organically through her interactions with chat, and what people began to expect from it. She never had to beg for speculation using hashtags so she can then steal their ideas, fans were coming up with the story themselves, without her asking, and she picked up what she liked.
It was the slow buildup of the contrast between her insane antics and her more comfy side throwing new fans for a loop every time they caught a Minecraft stream that brought this out. K I N O.
Had she first introduced herself as an eldritch abomination, nobody would give a fuck, because that's retarded, she's just a girl singing, talking and playing videogames. First she created a bond with her audience, and through her regular activities the label was attached to her because it made enough sense, and people were invested enough to suspend their disbelief in order to have some fun.
HoloALT is HoloALT precisely because you're not supposed to mix their stream "lore" with whatever projects they'll release under the ALT label. Anything coming out from it will create its own stories loosely based on the characters. I don't buy that making convoluted lore feeds into a label that was born precisely to separate fiction lore from chuuba lore.
Sora didn't have to change her background to be the go-to for horror in any fictional project they do, like the horror hologra episodes or Error. She just likes horror, she's good at acting the role, so they do it. It's fun. And if you don't care, absolutely zero of it carries over to her regular streams.
I'm just rambling, I don't even know what my point is. EN was a mistake.