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Untested, however, should work. Takes following measures to prevent Nightmare spawns:
Blacklists all levels
Removes spawns on all levels
Sets health to 1 as last resort
January's message about your first time seeing the Nightmare should be removed but might possibly play. The satellite has not been touched - I don't know how it will work with this, though I assume the quest would never begin. Please report how both of these go.