What is the meaning of this Bastion level (spoilers)

Question

The Sole Regret is the level where the boy finds his shield, and his first stone statue.

One of the levels (inside Jawson Bog I believe) is a copy of that level, with a different narrative. Instead of the good guy, the kid is portrayed as a burglar and a thief. I don't remember the wording exactly, but instead of The Security takes him for a petty thief, the narrative makes it obvious that he is a true thief.

What is meaning of this alternate level?

I thought that its meaning was that perhaps the kid is the calamity itself, through his voyage of destruction throughout the world... however after this tiny level, I never found any other supporting evidence.

Perhaps this happened in an alternate timeline somehow?

Answer 1

The Kid passes out from the Bog's noxious gases and is hallucinating. As far as I can tell, that's all there is to it.

It's not so much an alternate timeline as a trippy fever nightmare.

Answer 2

I totally was thrown off by this moment in the game, even though it can be explained by the gas, the tone became much darker. I felt like perhaps a revelation was occurring and it's mostly because of the narration of Ruckus...the narrator reveals information that obviously at some points can't be revealed by the Kid if he were to narrate it himself, like a movie commentary or something. I almost felt like Ruckus had been lying to use the kid or perhaps the Kid was evil all along and his 'reincarnation' into the world left him without knowing his prior life. At any rate, any of these ideas would have either ended the story for the player in the role of the Kid or changed it dramatically, disrupting the game-play.