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I always felt that Talbot's humanity,at least a part of it,still resided within him in his Wolf Man form during the final sequence.So he was attempting to save the baroness from the clutches of the monster because she had located her grandfather's diary for Larry.The diary held the answer for Larry's death & that was his all consuming desire.Although the monster was right next to Larry during Talbot's transformation,the monster had to know that Larry was the Wolf Man,that made no difference to the monster.All it knew was that the Wolf Man was attacking him & he was going to fight back.