I’ve heard this take before, that it’s some sort of double twist meant to disguise Dr. Caligari’s real intents. I really did not see it. If you have any more thoughts on the ambiguity I’d love to hear it. I’ll watch again at some point and think about this perspective when the ending approaches.

The way it is filmed, there is enough ambiguity to allow the reading that the Director has forcefully put Franzis there to shut him up.