Accommodate modern physics in the account by organizing external experience from
a multiplicity of centres (panpsychic experiential realism).
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Anyway I think what must have happened is that things are actually not that dualistic. Remember that a daimotic sorcerer can literally walk into the Outside and interact with beings there. Similarly, the progenitors must've been able to use technology to glimpse into/measure Outside related things, one of such things being the Inverse Fire.
I agree that Bakkerverse is not dualistic at its core, at least not on the modern Mind/Matter distinction. And Bakker did say reality is like a Bicameral Mind, with the Left/Rational/Conscious being the Inside and the Right/Irrational/Unconscious being the Outside.
I think Idealism, specifically some variation on Leibniz's Monadology explains a good bit of the textual hints, as it provides for both the atomic reductionist success of the Progenitors as well all the mystical "God dreams" stuff people in Earwa talk about.
Basically me and .H. have been thinking that in the metaphysical scheme of the Bakkerverse there has to be a way to learn about the soul + damnation using scientific investigation but the level of advancement seems to require you end up going well past the Singularity, hit the Semantic Apocalypse, then realize you dun goofed.