The world and the creature belong to the same plane of existence.The boy belongs to another.It's a patern in Ueda's work.Some acidental merge of two worlds on some kind of spiritual/imaginary plane.Most of the drama/curse comes from that.
The feeling of being out of place.
QFT
I can see how some people look at it from a purely graphical point of view and find it almost contradictory. But I don't understand calling it "wrong", the whole point of it is to look contradictory.
Perhaps we (gamers) do too much "looking at it from a purely graphical point of view". But that's another story entirely