They don't fully understand what just happened or how, so they're trying to shake these weird possibilities out of their head and find a more plausible explanation. But it's only a matter of time before they realize how powerful they've become.
The grey text saying "You cannot give up just yet" is one of the game over messages you can receive when you run out of HP. The game doesn't explicitly explain why you hear these messages, but it does drop very strong hints, which you'll see later.
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