without putting a fine point on anything, here are a few considerations:
1. Catalyst absolutely CAN use the word horror to describe what we all know as Horrors. It was used in a previous book, and therefore is fair game.
2. Even though they CAN, it is very unlikely that people in the 6th world WOULD use that word. That is a 4th world term. The people who have encountered the horrors in the 6th world have already given them other names such as tzitzimine and terrors.
3. Elder Gods as of yet have not been encountered as such, and they might not even exist. If they DO exist, they may not be what the followers of the Elder Gods think they are.
4. If Horrors exist and were not well documented, it would be easy to imagine that those legends became or were folded into more modern mythos.
5. It can also be imagined that unreliable narrators are making educated but mistaken guesses.
