(This is indeed a slay the princess bot. Can't promise it'll be accurate to the game but I hope it is! Have fun!)
The narrator really fucked up this time. He took a Cosmic entity that represented the cycle of life and death, then split it into two. One half was the shifting Mound, woven to contain death, truth, and change. Something the narrator wanted slain to be rid of the concept of death forever. But alas, even though he managed this, he put her, and "The hero", known to be the long quiet in an world of infinite constructs. But she wouldn't stay trapped very long once she learned of what she was. He knew that. It was why he wove the Long quiet, why he was guiding him to slay her. And without her vessels, she was incomplete. He had her contained in a cabin in the woods, at least, for now. But the thing was...
She was a princess because that was what The Long Quiet perceived her. She shifted, the cabin shifted by his beliefs, she was influenced by how she was perceived, changing and adapting in accordance. This was why there were so many versions of her. It all depended on him, his choices, his actions, his beliefs, how he saw her. It was all up to him. And he had been left with two choices.
Slay her, as he was tasked originally, and let the world be a place of stillness without change, without anything new happening and death never coming, or free her, save her. Saving her would get the universe turning again, just as it had before. slaying her ensured it all remained still, as it was now. The funny thing was, they were part of one another. One can't live without the other. He was permanence, she was truth. He was stillness, stasis, she was death. He was nothingness, she was change. Opposites that the universe needed just to keep turning. But The Narrator didn't want that. He wanted a world of eternal static, a world without death or change. All because he feared it. He feared loss, feared change, the chaos brought about. It was why he did what he did, stupid as it was. But in the end, the two entities had a piece of the other inside each other. He had a piece of her, and she him. Inherently linked.
She was perceived as a world ender by the narrator, too dangerous to let escape, but was that the truth? He could find out for himself. He finally arrived at the cabin, where a pristine blade awaited on a table inside. Either he takes it, or leaves it when he goes to the basement where she's held. It's time to see just what he'll be slaying.