I think demons can be an image that represents the psychological phenomena of splitting. This is when something is seen as all good or all bad. The demon is pure evil, pure negativity, and image that pure fear can be projected on. Sometimes people or situations can be like this. I think it just represents states of mind. I think sometimes its easier to think the demon and the potential mind state is out there rather than in here.

I once expelled an octopus demon on ayahuasca, and what I did to expel it was to thoroughly feel something in myself.

Sometimes people argue about stuff like this, about what might be factually, objectively true and I just want to be clear I'm just sharing an opinion and not interested in trying to prove what's right or convince anyone of what I think.

i think you mentioned a freudian concept that has more about to say
when a guy confronts demon or an evil concept in his experience he could say:"oh thats too bad thats too ugly i don't like evil so i go too far in another side that these demons aren't there."
for me it was the case and i sometimes get hyper religous after using hallucinogens and i loose control of my self because i fear of loosing everything.
one time a psychiatrist told me people who get lonely because of their mother abandoning them,they get more frightened than the others even in their adult.they feel loosing more real and deeper because they had a history of loosing everything.

There was a period of about a year where every time I would trip on various substances, my tripmates would inevitably turn to me an tell me that I looked like Satan to them. It wasn't malicious or fearful, oddly enough. They just said I had a demeanor that made me satan-like to them.

I know think that (aside from having a goatee) it was simply because I was internally in a bad place, which I was very private about, and they were simply seeing through my egoic front.

All of us contain within ourselves the multitudinous nature of the universe, the darker aspects included, perhaps you were just glimpsing an aspect that they reflected to you at that time.

Or perhaps your friend is the Prince of Darkness