Here's my opinion regarding the theory of 6 being the Lady: -I believe originally the timeline was VLN and LN 2. But when 6 went through the TV, she actually went back to a time period set long before the arrival of her old friend to the Nest. Here, she followed her Shadow's advice and went to the Maw and consume the Lady in order to get revenge and get her power. Once she arrived, she set the events of "Little Nightmares 1" into motion and defeated the Lady, but here's the catch. She didn't kill the Lady, she only consumed her power. As a result of this, that Lady turned into the Granny, and 6 became the new Lady, in the hopes of gaining control over the Maw and survive, far away from the Pale City. As the years went by however, her guilt over what she did to Mono and her obessession with that Music she constantly heard in the music box drove her mad, making her more and more terrified about becoming ugly and weak, not to mention a creepy old person like all other corrupt adults, because that's how she saw herself, and she refused to let others see that side of hers. So she decided to continue where the previous Lady left off and continue that messed up business of hers in order to sustain that place, and consequentially her own power and hunger. She also decided to try and send the Ferryman after her younger self in the hopes of getting her before she can get to Mono and doom him, changing the timeline to "VLN", "Little Nightmares comic", "Little Nightmares 1" and "LN 2", as she, just like her predecessor, failed to fulfill her goals, dooming themselves to a loop in which 6 would always go back in time and defeat the previous Lady, only to take her place and get eaten by her younger self. That's her nightmare. That's her punishment. She's an abomination like the other adults and is doomed to have her punish herself forever.
