You died, and you we're in a purgatory, which looks more like some kind of abandoned restaurant. It was night 4, the phone guy warned that there would be another havoc coming for you, but this one is different, she is the reason why all the manifestations here is distorted and broken, she's powerful

Havoc puppet: Soon, you started to hear a family music box, but it was also distorted, and it was coming from the window behind you