The ugly creature is actually yellow brow in the game. Yellow brow and JinChanzi (the master of Wukong) had an argument on whether human are inherently evil. Yellow brow believes human hearts are inherently evil, so he transformed into that creature to prove it to JinChanzi . If you look closely, in the animation, the person who stab the creature first is actually controlled by the creature to provoke others. All Yellow brow cares about is winning the argument, but JinChanzi focus on saving people from the pain of reincarnation, which is more important to him. That's why he said "You sow the chaos in hearts just for the sake of winning. How absurd and pathetic.
yellow brow was rescued from the sea by fishermen, who did not harm him. He did not think this was kindness. The fishermen benefited from yellow brow's flesh and blood, so they provided him with food, worshipped him as a god, and built a temple for him. He did not think this was kindness. The government did not embezzle wealth, but distributed jewelry fairly to the poor. He did not think this was kindness. When a person blinded by greed appeared in the crowd, yellow brow took the initiative to guide him to commit a crime (the collar of the man with a knife was pulled by yellow brow), and like an avalanche, he detonated the evil in the hearts of others. In the end, yellow brow proved his original theory: human nature is evil. Jinchanzi said that he was obsessed with winning and losing, and he was a pathetic guy. Because yellow brow first had a theory, and then got the result he wanted by guiding reality. Instead of practicing in reality and finally summarizing the theory through the results. Even if there are 100 parts of kindness, as long as there is one evil, yellow brow will make the result lead to evil.