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So Link was just told the story. In that case Lanayru never says anything about a past hero becoming a Dark Interloper. Couldn't be a flashback if we assume Link saw no vision at all...

I agree, but in ways I took the imagery to imply also that Link could become corrupted by power. It was a warning - Link got the point and wasn't corrupted.

Yeah I've always thought the Dark Interlopers were once a part of the sheikah. A schism happened and the Dark Interlopers were formed.

Watch it be Zant.