Honestly there's no reason why Billy couldn't have heard ghost stories about Feral. But whether he's a reincarnated Taabe, no. Stories surrounding that kind of belief are fine. But actually addressing that as lore, no. It's not that kind of franchise. An idea could be that he'd heard of it and would emulate Taabe not knowing it was and how Naru really killed Feral. But him being the next incarnation of him is a bit much for a story about aliens. Not to say you can't, it's just that that sort of mysticism has never been lore. Mysticism has been used to explain the Predator to Humans by Humans, not the function of the universe.
And that further raises questions about Billy's death given he seemingly is killed the same way. Reincarnated to encounter another Predator and die identically having learned nothing. And then does that mean Feral could be Jungle Hunter? But if not then why are humans brought back but not Predators? Or are they literal demons who are also aliens? Really it takes the mysticism angle too far for something that should never be literal.
Though I suppose that is an angle for a sequel. You could bring Dakota Beavers back as perhaps a relative of Billy. Someone of course born after 87 and you could make the connection. Maybe grounds for a Prey trilogy. Naru gets the pistol, hands it off to Greyback, Billy's relative tries to figure out what happened to him and meets Harrigan discovering the pistol and the Predators.
