Franchise Killer: The Dream Child was so reviled that it was decided to kill Freddy in the next movie.
Old Shame: For co-writers John Skipp and Craig Spector. Apparently, the only thing from their version of the script that survived to the finished product was Freddy saying "It's a boy!" after his resurrection.
The first draft of the script didn't have Greta, Mark, or Yvonne. Alice's friends were named Dean, Jen, and Ginger.
Ginger appeared to be a prototype of Greta, and suffered from actual bulimia and a sleazy manager named Buddy instead of a domineering Stage Mom. She would've died much later in the film with a two-stage nightmare. First, she appears in Club MTV only for Freddy to turn her into a grotesquely fat pig monster, before she starts puking blood. After waking up from that part, Freddy appears and guts her open in a way similar to Tina's death from the first movie, with the police thinking Buddy actually did it.
More on Freddy's backstory would've been explored, such as how his mother gave him up for adoption and how he'd been bullied relentlessly by older kids and a cruel Mother Superior, leading into his desire to hurt others.
Amanda Krueger would've had more of a role where Alice calls her out for abandoning her baby and being indirectly responsible for how he turned out.
Alice's pregnancy was going to advance rapidly thanks to the energy Freddy was infusing in her unborn child.
Freddy's goals with Alice's baby were made much more clearer, with the reveal that he'd been planning on using Alice's fetus to be born again, and had in fact already manifested inside her while feeding on the fetus she conceived with Dan.
Other early drafts including one where the kids were part of a small theater production, and another called "Freddy Rules" introduced Nancy's uncle and his family as main characters alongside Alice. This draft included something called the Coma Pit, a realm of the dream world Freddy was absolutely terrified of.