Just to Confirm it Spoiler!
The Correct option is Destroying it right?,the Puppet does metion later on that it was a trap.
Maybe?
Like I said, the game keeps trying to steer you to pick that option, but it could be a red herring for all we know.
Only info I managed to squeeze from Arc is that he’s considering giving the player an option to “fix their mistakes” later on… Whatever that may mean.