That story they told...

...about the girl being hanged and her limbs were stretched out because stones were tied to her legs etc.

People complained that story lead nowhere. Actually, it seems like it kind of did. Since the writer said that what we see in the house isn't the witch and that thing did have really long arms and legs...you see where I'm going with this.

OK, so that part did lead somewhere, unlike, for example, the injured foot and the drone.

However, we don't see the thing in the house for a long time, just a couple of seconds, plus, the writer had to say that's not the witch, how were we supposed to come to that conclusion, especially since that thing barely looks human, so it could just be a random monster for all we care.

So, I'd argue that including that whole story just makes it worse. It's like playing a video game and needing to read additional material online to get some parts of the story in the game, instead of it being properly added in the game itself. And no, I don't think it needs to be spelled out, it could be subtly hinted at, to really makes you think. This just wasn't done well.