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Why he would pay you through the end of your contract sounds like more of a logistical decision, based on what he thought might be best for the company and for himself, and perhaps also for you but likely not as a primary factor if he is as you describe, than one related to anything particularly related to aspects of disordered thinking.
If you indeed look upon the relationship as having been toxic, it's probably best to just be glad for the accommodation of what amounts to severance pay, while not looking to read anything more into it; just my opinion.
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“We use our minds not to discover facts but to hide them. One of things the screen hides most effectively is the body, our own body, by which I mean, the ins and outs of it, its interiors. Like a veil thrown over the skin to secure its modesty, the screen partially removes from the mind the inner states of the body, those that constitute the flow of life as it wanders in the journey of each day.”
— Antonio R. Damasio, “The Feeling of What Happens: Body and Emotion in the Making of Consciousness” (p.28)
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