Those things seem like they are taking it easy, but they are not. Literally, "Those things appear to be Yukkuri, but they are not."

These seem to be even more of an actual mononoke than the modern youkai who have assimilated into the human world.Mononoke: another term to describe youkai, monsters, spirits, and/or ghosts.

I wouldn't go that far, sage of the youkai.

Aren't you way overestimating them?

Aren't you way overestimating them?

Hmm, I see...