Walking up the stairs of the basement and leaving the north tower, Gawain and Amber finally saw the changes that happened to this castle.
Just as Gawain speculated, the entire castle had been enveloped in a long-term illusion, and its appearance was created by Lilith Kant's dream realm. But at the same time, it wasn't purely a dream as the boundary of reality and illusion was particularly vague in this place. They were mutually overlapping and influencing one another. Things that happened in reality could interfere with the dream realm, while things in the dream could also reflect in reality.
After the dream realm faded completely, they were able to see the ancient castle's dilapidated and corroded appearance.