How about doing it out of pure curiosity?
With no underlying motive beyond "What will happen if I do this thing next?"
It is supposed to be an Eldritch Abomination after all...and most of ''them, tend to think of humanity as non-existent at best.
Perhaps it's being done so that the being can feed on their memories: that would explain the memory loss, and might explain the lessons as "fattening them up". The lessons cover impossible things because the content doesn't matter—just that the students know something.
My Games & WritingOr have it feed on what humans would call madness or nightmares: obviously they would die far too soon if it could only work on the disorder they arrived with. Something like shearing the sheep instead of eating them. It may even plan to send them back with a reality-concordent set of useless (to it) memories.
Imagine what life would be like for someone who has no amount of craziness to cushion them from ordinary life.
Hmm, these are all good ideas, guys. Thanks!
Current Project: Incorruptible Pure Pureness
In my new story idea, the villainess is some sort of chaos entity that basically traps a bunch of "students" in a "university" and has them learn about things that are impossible for their reality. While this is happening, one student is being cloned, the campus keeps shifting, and the students begin to lose their memories about specific events.
My big roadblock is, everything done to these characters is done intentionally. It's not that this entity suffers from Power Incontinence and just causes chaos to happen unwillingly- there's a motive. But what motive would an otherworldly being even have? Why would an entity like this do these sort of things?
Does anyone have any ideas as to what this character might want? Doesn't have to be a motive humanity would understand, of course- think Blue-and-Orange Morality or similar; just a motive that would make sense for an entity like this and not something that would be a human motive for evil.
Current Project: Incorruptible Pure Pureness