According to Michael's state, preoperational thinker, seeing the mentioned scene would most likely make Michael think that the person has, in fact, became a werewolf which is going to make him feel terrified, petrified or scared.
The preoperational stage is a cognitive development theory that occurs between the ages of 2 to 7. During this stage, children are still learning basic things such as language. A preoperational thinker is able to think about events, places or even represent things but this is done in a very limited manner. That is why it would be easier for Michael to think that the character of the movie turned from a nice teenager into a werewolf.