@gooochyeee I do know what the limit werewolves to Moonwood Mills option does, but since my experience is that werewolves scare sims if they are rampaging, and using that setting means they don't do that outside of Moonwood Mills, it means that usually sims won't be scared by rampaging werewolves outside Moonwood Mills. I have played with all the occults at some point, I've just not had them scare my sims, that's why I didn't ever notice it specifically tied to occults.
The main things my sims get scared from storms, and certain lot challenges, ghosts (though I usually only get them is I have the spooky lot challenge, being pecked by chickens, teens by career day and haunted houses as mentioned by @scipiogarling . The described use in a haunted house where instead of getting scared by something you get energized is what I expected to see, since that's what the blog post said it did. However I didn't realize you'd get gifts out of it, which does sound like fun, but doesn't really sound like a lot challenge to me (though the plus of it being a challenge is it doesn't take away from your slots for lot traits).
Best regards,
Jennifer