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Edit: I just rewatched the true ending and at the very end there comes some text what happened after burning the being. There it says: "The fire consumed the last road leading to the heart of the woods.". So the being is the heart of the woods and you were not on your way out of the forest - you went even closer to the center and the being caught you in another dream. The lore is super interesting because they also mention helicopters flying over the burnt forest, looking for survivors.
https://steamcommunity.com/sharedfiles/filedetails/?id=1735392239
From a storytelling perspective, the Outsider camp and their scientific notes seemed to serve as a foreshadowed warning of this. From a gameplay perspective, it's a last minute tip to the player that something might be up. To give them the paranoia to really inspect the dream, to trust nothing.
What bugs me about the "everything was a dream" theory is... why? If the Being could give folks peaceful, enjoyable dreams as indicated by the Sleepers unwillingness to wake, why have the Protagonist suffer? It was willing to give him a pleasant dream at the end, so why force him through a nightmare? Especially one that gives the protagonist the knowledge to defeat the Being?