Per wiki policy, Spoilers Off applies here and all spoilers are unmarked. You Have Been Warned.
The initial tutorial/cutscene gives you some story, and the journals help keep the story alive in your head. But after you find all the journals and forget their contents, you end up fighting just to fight.
This implies that, before the heroes reached the Fountain of Youth, they were once bold warriors like the player character's family and Johannes. They got their immortality, but became corrupted by its curse and became giant monsters, forever doomed to either mindlessly kill heroes that enter the castle, or be slain by them, and resurrect. The preset characters used to fight the Bonus Bosses only appear in those fights, and nowhere else. So why are they only there to begin with? Perhaps it is meant to represent the heroes fighting the monster they have become, from their perspective. So from the preset fights, the transformations were as follows...
- Lady McSwordy became Khidr.
- Sir Wagner became Alexander.
- Sir Dovahkiin became Ponce de Leon.
- Lady Echidna became Herodotus.
The Prince/Johannes had slain these monsters and thought nothing of it, yet the monsters slain were the past heroes that reached the Fountain of Youth, and they likely resurrected once more before the player character's family began to set foot into the castle for the first time, hence why they are there despite the journals stating that the Prince had already slain them.
- To add further depth, perhaps these simulated fights are a representation of the heroes internally struggling to fight the monster that they turned into due to the curse, which likely explains why the fights are so difficult to begin with.
Not much evidence for this one, but given The Prince's comment on how he thinks it's alive, the fact that all the previous fountain drinkers have both their minds and bodies corrupted into monsters, and the fact that its name could be human, it seems at least plausible. Naturally, this would have to be one of the very first to drink from the fountain. Someone whose form becomes the castle around the fountain when he becomes corrupted.