There is a missing piece of continuity, which the director's commentary ignores by claiming that the last third of the film is fantasy. It would be a spoiler to say what it is, but I found the transition dishonest. Worse, one learns from the commentary that every young male auditioning for the lead part had to do the solo masturbatory shower scene; hundreds did so until finding Ricardo, who was perfect. I am sure there was much enjoyment for the director to watch the auditions, but the horror comes at the sexual exploitation of Ricardo, made clear in the commentary. The director declined to use the actor again, because his body was "used up", leaving Ricardo to move back to live and farm with his mother.
The director treats Ricardo as his character Sergio treats his sexual objects, controlling, and then abandoning them. I grieve for Ricardo.