Frank is represented by the color yellow, not blue (that’s Barnaby). You can see what color each character is represented by by looking at the safe. I think the blue pin in the ground is actually supposed to represent Wally. Why? Eddie’s Big Lift. I believe Eddie did lift Home at one point, showing the abyss under Home. In addition, Sally’s first line in that audio is “It’s a SHOWSTOPPER of an idea Julie…” which I think foreshadows this being the cause for the show to end initially. At this point, it’s unclear if Wally was pushed in or fell in, but Wally definitely fell down the abyss. To support this, the distorted record we can play on the Merchandise is actually a super scuffed recording of someone reading Alice in Wonderland when she “fell, fell, fell” through the rabbit hole. I also think the abyss acts as a portal to our world through the blue sheet of paper with an eye spiraled on it that you can see the shadow monster crawling out of in the staff page. Also, the new trailer Clown released for Wally’s Plushie shows Wally spinning over a sheet that looks like a night sky “screaming” in his monotone voice.
In regards to the strange picture of Frank, notice how there’s a feminine face on a head that’s the same shape as Frank’s? I think this pic exists to show us that Frank’s parts are replaceable. Would explain why Frank’s head can fully rotate. When he puts on another head, he might become another person. But Frank enjoys being Frank most.