Aha, that is a really poorly thought through mechanic, I have to say. There is literally no way the player can know that. I thought the torches were just showing how many regions are left to explore.
Like seriously, who would get an idea like that? There was NOTHING in the game even remotely hinting at that. Maybe its because the main character is not the brightest and can only say "muh alice," "muh alice" where is "muh alice."
Now I'm mad.
So now I know what to do, do 9 "story progressions" and then just grind until you hit level 150. No exploration, nothing. Just straight up ignore all the levels, just grind and reach Sickening Clock Tower to beat JubJub.
Who ever is going to ask me about the game, I will tell them thank god there are spoilers, because you should spoiler the game for everybody. Because of this bad mechanic.