Okay so, we all know that Nightmare ate the apple and turned goopy but, if the supposedly canon story was correct then, why is nightmares right eye covered and why does the ghost of passive have a hole in his head when we can clearly see that passives body is perfectly intact?

I have a conspiracy theory, I believe that the villagers attacked Nightmare and put that hole in his head and then they chopped down the tree and then a golden apple rolled over to Nightmare and then I ran out of room.