(I know it's early, but I wrote this yesterday. It's long.)
The illusion discs probably use electrosonic signals (TTO Pg. 128, last 3-4 paragraphs) to alter the nervous signals that are being processed by our brain, causing us to see things differently than how they are. (The whole Twisted Animatronic dilemma) It makes me wonder, how much of what what we see during gameplay is "real"? There is a possibility that these discs could have been used during gameplay of FNaF4 and the Nightmare animatronics were just simple toys or endoskeletons. (Also like the Twisted Animatronics) Maybe, during that tie, Afton had just developed these illusion discs, and needed a test subject. (Main Protagonist of FNaF4) So, he tested o MP, and dicovered terror as one of the fundamental emotions that leaves Remnant, if I am right about the whole "Remnant is Energy is a pure concentrated form," thing. Also, on TTO Pg. 230, last sentence, Charlie notes that the lights are "Making her dizzy." These lights, similar to the illusion discs, altered her perception of reality, making her see and register very few colors and shapes. It's required to mention that Charlie was inside of the 1987 location. So, does that mean the '87 location is entirely different? Are the Toy Animatronics entirely different? Does that explain the Puppet hallucinations, Shadow Freddy, RWQFSFASXC, and other easter egg pop ups? What if they are using this "blacklight" illusion to their advantage, or if fate just has a way planned for them? Still, I just want to know what the Toy Animatronics really are.
What about FNaF3 and the Phantoms? I used to think that the Phantoms were just the missing children conveying themselves to Micheal as their original form, just burnt up. Now, I'm starting to think that they are just illusions too. The missing children probably have no control of how they appear, and, once again, Afton is pulling the strings behind (most of) the chaos. There is still the possibility that they are just hallucinations/other, because Phone Dude never mentions another animatronic being found, much less 6 others, However, it could always be the illusion working on him & others as well.
Lastly, there is a chance that in the Stichwraith Stingers and Fazbear Frights, Eleanor's pendant is also one of these illusion discs, since it allows her to change forms very easily, and the process is similar to TTO. It even describes Eleanor as blurring out, then changing form. But, it says that her pendant was made by Dr. Talbert, who is basically this universe's version of Henry, but the TTO discs were made by Afton. So, could they be made of the same technologies, or are they entirely separate. Perhaps the answer lies in the darkest shadows of the Pizzaplex, or in the text between the text. Even better, perhaps the answer lies deep within the answers we already have, or perhaps we will never know.