technically nightmares are hallucinations and Mike is the one having them, there are plenty of videos explaining it since Mike did draw them in the survival logbook if i remember right. So nightmares are mostly Micheal's and they do not really kill him and just torment him as you said But i think its their au since things are quite different here and the one having nightmares is c.c and not mike, so yh. Guess its their alternative univers and theories
Actually, the funny part is that after Evan die, he's uses the nightmares to haunt and torment him as revenge. That's why in my au, he usually doesn't sleep and just stay in the living room and watch tv.
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Well the nightmares would just have to starved seems disappointed at evan being dead meaning they can't eat him wonders why they can't just found another kid to eat
