When does Shared Nightmare end?

Nightmares domain spell Shared Nightmare can give someone the confused conditon. I am confused (hehe) about their interaction:

  • Confused ends if you take damege and succeed on a DC 11 flat check
  • If the target fails its save (but not critically) it is supposed to spend the first action confused each round, for 1 minute
  • If he critically fails, it gets simply confused for 1 minute

There are 3 options:

  1. He cannot end confused, unless he is confused. This would actually make the Failure better for us than the Critical Faillure. Unlikely that this was the intent
  2. If he is damaged and succeeds on the flat check, the effect ends. Basically worthless, unless the target critically failed, and we have someone else to hurt
  3. Other (I misunderstood something)

Which is it?