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These new turn of events, while not shocking, were a ride.
I wouldn't call Guwon a green nor a red flag. It's more complicated than that, because I don't think Guwon is sane in the sense of a mature person capable of normal thinking with a normal set or morality/moral compass. And it has nothing to do with him being good or bad, it's because I genuinely believe he was created, physically. I think he's some sort of Frankenstein, with all those stitching marks. He is incapable of rational thinking, and he's just yearning to be a savior.
Now, to analyse (please bear with my ranting, or abandon this comment since it'll be a yapping session):
Guwon is deadset on being Sisyphus, the boulder being this town's peace, and he doesn't know anything else beyond that. This could be a thought ingrained in him as a purpose for existence, or a desire that bloomed out of desperation for being tormented by death earlier. If we go with the Frankenstein theory, and that the undead were an experiment gone awry, then it could be that Guwon escaped and now longs to stop the same fate reaching others, though due to the torture and instilled fear he faced he knows not how to get to others otherwise.
We've seen that Guwon actually mimics other humans a lot, he learns through their behavior then repeats what he learns, and despite all his attempts to fit in, he still inspires fear and horror in other humans when they witness his violence causing them to go to the safe haven he creates for them without any hassle, which to Guwon proves to be a solid fool-proof method. He doesn't need to think on right or wrong, as long as his intention is to keep them safe.
He longs to fit in so bad with others that he's at war between being feared so they can follow him and stay safe, or being loved and accepted but causing that seal tight foundation be shaken. That's why he yelled at teach asking if he's wrong, a twisted desire to see the same reaction others have given him: fear, submission, detachment. But he was challenged, he was called out and reprimanded and scolded like the kids, like humans fighting each other, like family members arguing,,, like normal. And that's why he caved in easily. He realized he doesn't actually like being feared, despite knowing that fear is the "only" way to keep the people safe.
That's why teach is not like the others. He's not selfish in his fear, and he's not a coward despite what teach thinks of himself. He even thought he's willing to be trialled for standing up for the people's well-being, and to Guwon that's a sentiment he too can understand, because that's ultimately his aim too. In Guwon's eyes, teach is selfless, loved, not feared by others, the kids follow him, the people are willing to ask him for him, and he embraced Guwon from the beginning, teaching him all of the things that made him feel closer to a human than he ever felt. And to top it off, he isn't afraid of slapping him, yelling at him, reprimanding him, or telling him he's wrong. This is why we see Guwon now acting so giddy and happy despite the obvious chillness that exists for everyone else, he truly is unaware and not in a "oh no my boy will be affected once he becomes aware" no I mean he's mentally unaware of anything because he's not exactly the sane we consider on our sanity metric.
Bottom line is, I don't think Guwon is actually a bad person, nor a red flag. Teach has every right to be rattled, and it's not his responsibility to teach or fix Guwon at all, but I do hope he calms down and start seeing the deeper facets to Guwon's personality and character, and not hold him in such a fearsome and disgusting light.
This story has been very interesting so far, so I have high hopes for the author continuing this in such a complex way!
If you've read so far, thanks and sorry I am high on multiple sugar packed cookies rn