1) Remembering that Poppy herself wouldn't exist here because NPCs have to be existing locals and the reality shift isn't creating people out of scratch: something to do with experimenting on weres seems like a Torchlight thing to do. It would have to be hush hush though, because werebeasts are actually considered the least of the world's concerns in terms of supernatural problems.

2) Not really, it would probably just make her better at being a ghost.