Once there was a lingering soul trapped in the stream of qi belonging to the highest worlds.
When it was supposedly killed by the Emperor, the Gray Figure had its soul split to almost nothingness and invaded the deepest parts of the angelic and hellish qi and eventually, its chaos qi.
His soul was split into many pieces in order to leave as many marks as possible. He left his husk that was his skeleton and erased parts of his own memory leaving only bits of the truth and a chunk of its creator's words.
It lived through the qi of Heaven and Hell for millennia, it was revived in the form of a Gray Figure who had knowledge of the chaos qi but nothing about itself. It believed in its own memory regarding the talk of peace and harmony, but still trusted the instinct it felt.
It fooled itself so it could fool others.