So, despite the low chances, the first Nightmares of Freddy's game was found.
From what I understand, the user (Franky Beppers) who uploaded it had an old hard drive, which also contained Five Nights at Toy Freddy's 4, Five Nights in Heaven, and other games.
Unfornately, as of the time of writing, Nightmares of Freddy's 2, Nightmares of Freddy's 3, and Nightmares Of FredBears: Souls of Annhiliation are still lost.
I implore you, if you're reading this and you know anything about these games, please tell us.
***
The Title Screen
Since we now have the actual files instead of a blurry video, we're now able to see the title screen background

The one-eyed Nightmare Freddy is believed to be The Nightmare, a reoccuring antagonist of the series, who may also be "The Devil" is refered to in NOF 1
***
The Intro Cutscene
We've also been able to see the full version of the intro cutscene text, which has multiple parts previously not known about
"The poor boy is scared"
"I hope he knows he's in a much better place than he thinks"
"This place is filled with loving parents"
"Sadly, I can no longer be one of those types of parents"
"Hope you can make it my child"
"The nightmare has only begun to rise into this world"
***
The Hell Office
Nightmares of Freddy's only contains one night
The location is known as the Hell Office, with you having to option to peak outside of you room, as well as open-close your eyes. It's unclear if the latter serves any true function.


In-game, there screen contains the current time, as well as a cross symbol and a bunch of numbers that seem to serve to further purpose.

At the start of the night, you get a phone call from an unknown person, although it's implied to be one of the protagonist's parents. The following is a transcript of that call:
"Can you hear me? I'm with you"
"Listen, I will help you along the way"
"Just make sure you listen carefully"
"There's a giant screen that shows a clock"
"you can see it, right?"
"C'mon, I taught you these things, you can see it"
"And you can view the outside of the room, and be sure that the monsters don't get you"
"They will try to feed on you"
"I'm sorry, this was my fault"
"Just make sure you get out of this place"
"It's not safe here"
"This is where the Devil lives. Hide"
***
The Enemies
Once during the night, usually around 3AM, a character named Core will appear on the ceiling of the Hell Office, pulling you back itno it if you're elsewhere. Blinking will make it disappear, while doing nothing will cause a jumpscare (Specifically, the Freddy power-out jumpscare from Fnaf 1. All other characters share this animation, lacking jumpscares of their own)

It's also worth noting that, in the files, there's what seems to be an early image of Core in the other room. Its a more yellow shade of green, and it features far more endoskeleton parts. It's unknown why this version went unused.


Throughtout the night, certain pieces of audio will play.
The first is the sound of running, which is pressumed to be emited by Core, although it has little impact on when it shows up.
There's also unedited audio of a voice stating "Let's play little child" this is believed to be said by Dread, a character who never physically shows up in the Hell Office, but is featured in the extras menu.

The llast noise, which typically only plays once per night, is a distorted, low-pitched voice saying "I see you". It's likely that this is Grimlock's voice, and unlike the other audio, is extremely important. If the player hears it, they must blink quickly, or else they'll be jumpscared.

***
Post-Night Cutscene
Unlike the first cutscene, this one was fully lost until now.

It features The Nightmare's head on a pike, with the following text
"This is how it happened"
"This is how the nightmare died"
The implications of this are still unclear, made more confusing by the rest of the series featuring The Nightmare alive.
***
Closing Remarks
Unformately, the rest of the series is still lost. In addition, we're unable to decompile the game's code, only images, meaning we're not sure what other nuances we've missed in terms of the gameplay.
Again, if anyone has any information on this game or its sequals, we're dying to hear it!
Anyone who wants to play this game for themselves, there's a reupload by Franky Beppers.
If you'd rather see the game in video form, both IULITMx and I (CherryBlot) have videos up showcasing the game.
Keep up the fight to see the light
Until next time
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