Larian was always very liberal about its lore, the only two games that were tightly connected were DD and BD. I think they don't care about the lore itself, they just use different elements from their original story to write completely new ones with the same characters. It's author's own fan-fiction. Imagine Tolkien writing about Aragorn turning evil and putting him into a slightly different setting - that would be the same.
And while I find this way of storytelling interesting and engaging, it sucks that we don't get satisfactory conclusions to the stories Larian tells us. And especially with this game, which could have utilized Damian, who is the most interesting character they've created.