How do you unlock the "Not worthy" achievement? Do you have to let the hanged squirrel fall down?

Potential spoilers ahead. So I gave the 'dream' to the crocodile, let the hanging squirrel cut its rope and plunge to its death... now i don't really know what to do next. Where do i go? What do i do?

I took the hide of the squirrel which hangs from the cliff and gave it to the squirrel which stands by the ledge. On returning back to the dream world I found dialogue options for that squirrel in the beginning area again and the squirrel was missing.(It had asked me to find its dream next to it and I was planning on taking it to the crocodile) https://ibb.co/nRDbHML (Bug ?)...

For the first time, I find a game where both endings are pretty sad. Which is the saddest in your opinion? I can't decide... PS: of course, HUGE SPOILERS IN THIS THREAD!

it resets every single time you loop and the lowest setting is pretty high.