My interpretation is that Tod is the reincarnation of evil, a demon or even the devil, pushing Dannis towards perdition. Tod is not just a hallucination (in fact Dennis is told not to trust anyone, because others have already seen him), he is an entity. Tod is the coyote, that is, the one who wants to eat the sheep, but he is also the one who wants to bring dannis towards sin and make him forget his duty, that is, to protect the sheep
My interpretation is that Tod is the reincarnation of evil, a demon or even the devil, pushing Dannis towards perdition. Tod is not just a hallucination (in fact Dennis is told not to trust anyone, because others have already seen him), he is an entity. Tod is the coyote, that is, the one who wants to eat the sheep, but he is also the one who wants to bring dannis towards sin and make him forget his duty, that is, to protect the sheep