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Was there a story about a girl and a ribbon in the book you read, and when the ribbon was removed her head fell off?
If so it might have been “In a Dark, Dark Room” but that was published in the 80s
edit: I’d also look at Ed Gorey as well, his art style is in that same vein. Also i can’t read
The story is such a core memory to me for some reason. I know what you mean about it being a fever dream, i remember reading it in a library book as a small child then never being able to find it again until i was an adult, so Im glad someone else has been in that situation