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The decapitation signalled that Layton's transformation was over and immediately he violently exited the scene created by his domain and violently contracted his domain towards his soul to begin the application of his method to attain godhood.
In the split second before he contracted his domain into his soul Layton lightly exuded the strength of his will and destroyed the resentment gathered by the death and insidious plans of the rebels, the scene caused by his domain, and his perception of his body was in a weird real and not real state, the resentment simply symbolized various hidden dangers and caused by his transformation and with them being dispelled this hidden danger no longer existed.