Elohim, Demons, & Unclean Spirits
Angels
While the term "angel" is popular and recognizable, in linguistic terms, angel is not a being, but a job description. It is a term concerned with function and not a commentary or form. The term angel means messenger and is neither inherently human or spirit, nor inherently holy or unholy. By the time the New Testament was written, however, this term was mostly used to identify a spirit being who remained in loyal service to the Most High.
Elohim
The term elohim is used to refer to form, or essence. While it is often translated god with a little "g", in practice it simply refers to a being who dwells in the spiritual realm and has no physical body. Elohim has been used to refer to the Most High as a "magnifying" plural term, but it also is used to refer to the lesser spirits he created. What culture has come to refer to as angels, are better described as cosmic intelligences. They are not all powerful, all knowing, or present everywhere which are qualities belonging only to the Most High. They take symbolic forms of appearance and their actions, if viewed through spiritual eyes, also play out in an artistic display of symbolism.
Watchers
The term watcher has has been much maligned because of its use in Enoch to reference the angels who's sin is referenced in Genesis, Peter, and Jude. However, watcher is also used elsewhere in Enoch to describe loyal spirits and is used the same way in Daniel. Watcher is a term concerned with function rather than form. In Allies of Majesty, Watcher describes elohim who have been tasked with overseeing and guiding humanity and nature. When not serving as a Watcher, elohim may engage in praise, divine council activities, or may be tasked with duties overseeing nature elsewhere in the cosmos. All player characters are Watchers.
Demons
The term "demon" technically means a spirit. Neither holy nor uhholy is directly implied by its definition. In scripture demon is generally and somewhat generically applied to rebellious spirit beings. In the Old Testament is seems to be more focused on unholy angels and in the New Testament seems to change use more toward describing harassing spirits. There are also less frequent references to “knowing ones” and “glorious ones” that are clearly references to spirit beings. The best ways to determine what allegiance a being has is to know the ancient beliefs and to sort out what role the spirit is playing.
Evil Spirits & Unclean Spirits
The terms "evil spirit" and "unclean spirit" have similar usage.
Evil spirit means “harmful” spirit and does not directly convey a morality. However, in 2nd Temple period Jewish literature evil spirit sees a more specific use and definition. As referenced in Genesis 6, some elohim, referred to here as "sons of God", left their station, manifested physically, and took wives from among humans. The result of their union was flesh and spirit hybrid beings referred to in Enoch and other 2nd temple literature as giants. These beings' violence was turned against one another and they were slain in war. Enoch also states the spirits of those giants were cursed by the Most High to be called evil spirits and remain on the earth, existing without a physical body. They were born on the earth and so the earth would be their dwelling. There would be no place found for them in heaven. They would henceforth afflict men in a wide variety of ways, explaining the use of evil, meaning harmful.
But the New Testament, we see these kinds of spirits called unclean spirits. One possible reason for this is that the spirits are unclean because of their ritual impurity having proceeded from the dead bodies of the giants. Another proposed reason is that they cause the affected humans to perform acts that make them ritually unclean. Unclean Spirits are very brash and bold in the absence of a superior authority. Yet when they are confronted by those carrying righteous authority, such as the Son or apostles, they cower in submission like a stereotypical sniveling villain. There certainly seems to be an observable difference between the behavior of afflicting spirits and the examples we see of the elohim, holy or rebellious. While alive they were giants of great power, but in death they are the least of the spirits and have no greatness.
Another interesting piece of information is how words of the Son in scripture and the curse of these in Enoch relay that these spirits are uncomfortable outside of a body, still hungering and thirsting and finding no rest. This discomfort adds to their desire to inhabit the bodies of humans.
If you and your group are uncomfortable with this description, you can use this unofficial, alternate option that what the game calls unclean spirits are rebellious elohim who have been incredibly downtrodden by their peers. This description works due to another principle that exists in Allies of Majesty. The principle is that loyal elohim are blessed with Honor by Elyon as they serve him and are made stronger as a result. However, rebellious elohim are no longer strengthened this way and can only become stronger at the expense of another unholy spirit. As unholy elohim fear other unholy elohim, the feared become stronger. Meanwhile the cowering spirits become weaker, having given up some strength to the other. This could cause some to go below even the power level at which they were created. This could be an alternate source for these weaker elohim.
Regardless if you adopt the canon origin or the alternate one, the function of evil spirits and unclean spirits should remain the same.
Definitions
We as humans have only limited knowledge about the actual nature, workings, and history of the spirit realm. Allies of Majesty, however, centers around the spirit realm and the spiritual beings we portray would most certainly have knowledge of the true origin and nature of the other spiritual beings they regularly interact with. For this reason, a decision has to be made and an official stance declared. Here are the meanings of terms used in Allies of Majesty:
Elohim in the game refers to any of the spirit beings created by the Most High.
Watcher refers to elohim tasked with observing and guiding humanity. Beings "sent out to serve for the sake of those who are to inherit salvation."
Holy Elohim and Loyal Elohim refers to elohim who remain in loyal service to the Most High.
Unholy Elohim, Rebellious Elohim, or Fallen Elohim refers to elohim who have chosen to walk a path pursuing their own desires separate from the Most High.
Unclean Spirit refers to the spirit of a deceased giant, a half-breed born of flesh and sired by an elohim. These spirits are directly under Satan’s command and are exclusively focused on oppressing, tormenting, troubling, and afflicting mankind.
Demon and Evil Spirit are generic terms used interchangeably of any wicked spirit opposing the Most High.