Now, brings up a good question. If every sentient being had aura which protects them. Would that guard have been gravely injured? Unless Mokuren has powerful aura crushing abilities. In fact, would Sapphire have been injured at all?
Ever sentient being has aura but not all are able to use it. Like John got cut by that branch before what's her name activated his aura.
And as for Sapphire two things, firstly aura is always on but in order to be 100% effective as a shield it has to be manipulated. Getting hit by a 120 pound faunus and rolling down a cliff into an airship doesn't leave a lot of time for that kind of thing. Secondly her daggers are specifically designed damage aura levels for maximum effect. If she'd not had her aura at the time the wound would have been much much more than superficial as it stands she'll have a bit of a scar and likely be fine in a day or two.
Besides do we really want an RP were our characters can only get hurt in the most extreme of circumstances. The aura I can only assume was put into RWBY to make it so that the characters could take a huge beating without dying as well as make it a near bloodless show so the kids could enjoy it. The aura wasn't made to make the characters impervious to harm.
Two things stood out to me in the negative sense. First off and the chief reason Morpheus did not win was the way it is presented. There is no sense of what would be known for sure IC and what would be conjecture. I just did not get the impression this is what would be what you hear around a campfire, or an interview with a survivor, or even a mission briefing.
Second, and this one is entirely a personal gripe, I dislike humanoid Grimm. That one is in no way a thing you could have known beforehand but due to a number of very poorly written RWBY fics and characters, humanoid grimm have negative connotations in my head.
Okay I accept that other entrees probably looked better than mine but dude if you're looking for specifics things like that then you have to tell us you're looking for those specifics. You didn't give a required format or a sense of what you expected in terms of information. Basically you said create a legendary Grimm and you left it at that. You can't give us a task in the Contests then penalize us for doing something if you didn't tell us that we weren't supposed to do it. If you wanted to know folklore about the Grimm, actual fact, and general knowledge then you should have presented us with a sheet that reflected that.
I get why I didn't win (had I been choosing I likely would have gone for the microscopic Grimm myself). We were given no structure to work with so I tried to make mine look like the Intro a 'Grimm's Fairtale' that involved Morpheus. Might I suggest next time making your expectations clear at the beginning of the contest so that some people actually have a hope of fulfilling them.
Oh and for the record most people like to hear feedback on there work so it might be prudent in future to do a write up about each of the entrees even if they weren't the winning ones. Tell why you like them, why you didn't and why they didn't win. People prefer that to good job everyone but I like these two the best.