The Doctor realized that everyone was just having a dream, and that includes Santa’s existence. Knowing that their situation is more like a wonderland, he escaped with Clara by dreaming they were saved by Santa and were flown home.
The two noticed that the crabs were dying one after the other. The Doctor woke up to reality after removing the last crab away from Clara only to realize that he has not seen her for 62 years.
Santa came back to him as a cue that he was still dreaming. The true reality was back at Clara’s normal age where the Doctor asked her to join TARDIS again.
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