@Wolvenworks:
One addition to my theory is needed.
We need to add the MC's previous incarnation into the picture.
So remember that those 3 men said they recently found a way to produce / secure enough "holy water"?
I bet the one who gave them the idea or maybe even the whole method to produce that "holy water" is none other than the MC's previous incarnation.
Just so that he could then make sure the girl finds out about it and is thrown into despair or whatever negative feeling he needs her to have.
Then he seduces her to become a Demon Spirit like he did with all the other girls.