I am guessing “The board” is either:
An AI, A genetically modified mega-brain in a jar, Elder Egans in lich form.
To me, Severance in general is about trauma and control. I mean, trauma in the modern neuroscience concept.
Trauma makes people easier to control and Lumon has elevated that to a global research programme.
They are trying to understand trauma and memory to further their ambitions of total control.
So where did Milchicks story come from? Probably his own shapely butt.
The truth doesn’t matter to Lumon, compliance does. Given the nature of MDRs work, they can’t get good results using direct threats and coercion. So they use a ‘religion’ tailor made to further this most mysterious and important work.
My two cents