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Yeah I figured out you need to read the log for removing the parasites in order to use the mixer, but if you get a "game over state" you're stuck entering the dream with the squidbunny parasite already attached effectively softlocking you. IDK if it's a bug or intentional.  Also if you get the unwidow (penis parasite) attached to you first then the squidbunny once you use the cleansing equipment you'll still have the unwidow attached so you still can't progress.

you can remove the penis with the venus (flying womb) it can be spawned int the dream house or found in the manor basement (after finding yuri) or the perfect Festival of Life in the Looped Forest

Once you have the Logs you can remove the squidbunny in a single dream in the labs