Im also curious when everything is going to blow up. We have the hint that he might be royalty. We dont know who his mother is and what was in the file that caused his father to crash so long ago. I think its also hinted that the twins dad might have loved qiao yans right? Or did I read into that too much.
Then there's the mystery of why he even needs the twins in the first place. Im starting to believe its purely in his head. Maybe the trauma from what happened to his father caused him to latch on to the twins just as much as they did to him. He's able to draw a line between them because he knows the twins will follow him anywhere and cause its really common to distance yourself to avoid getting hurt. When theyre close physically hes able to assure himself that hes in a safe space so he let's go of his mental barrier, cause your physical health is the easiest way to solve mental health.
Also great analysis, there's so many things i didn't notice until you brought it up.
Shou def is royalty or has a special bloodline ability bc his spirit animal managed to tame those monsters. And btw you did not read into it! I’m 99% sure the twins dad was in love with the shous dad. The flashback povs are filled with so much yearning, the way he keeps getting shous dad fav flowers for his grave even tho he knows his wife is allergic to them. It’s clear that he married the twins mother not out of love (they do have mutual respect) but as a way to make sure his offsprings turn out to be s class. I feel bad for the wife/twins mother ngl

So if we’re operating on the basis of the nightmare being solely from shou’s consciousness and not from some like evil ability then it’s a combination of his inner fear and guilt. Shou is stuck in his internalized homophobia + heteronormativity and knows that getting stuck in a straight marriage would make him miserable. He knows the gongs feelings but is afraid to put a name on his feelings towards them as anything more than familial affection. As of rn bc he is stuck in his inferiority complex about his rank so he allows himself to take advantage of their feelings and cooperation to keep his S rank abilities, but bc he does truly care for the twins, he knows that what he is currently doing is leading them on and the guilt eats away at him. They turn into monsters in his dream bc he knows the twins will do anything for him and he’s afraid that by feeding into it he’ll turn them for the worse, coupled that with the one time the twins noncon-ed him he also still has that fear towards them. He knows this current situation is not sustainable.