HEY, so one of my dorm mates may have found a fix! He started a new character and found that once he reached the Tower, caterpillar was gone. I tried it out too and it worked. You're able to switch to your other characters without caterpillar activating again. And a possible good side is you don't have to play through the entire thing. I played through half of it and found that it worked when I switched to my main. Let me know if it works!

Yes it did