William Ansley suggests:
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This makes it seem as if Horn's mind/program has been transferred to Silk's (discarded?) body. Well, it will undoubtedly be much more complicated than this.
This is by far the best theory, in my opinion. The "Horn" who is the narrator is the body of Silk with the mind of Horn the protagonist. There is almost certainly something additional going on, however. The business at the end (where "Horn" and Babbie get mixed up with each other) indicates that perhaps "Horn" has the same astral projection ability as Mucor.
Dave Lebling
(aka vizcacha)
*This is WHORL, for discussion of Gene Wolfe's Book of the Long Sun.