Iris has that "eyes open a little too wide" thing going. It's probably because of Amaterasu.
I think Edgelord Shinra was trying to smack Amaterasu, not Iris. ("You're here too?") After all, Edgelord Shinra is his doppelganger from Adolla, and if Amaterasu is trying to take over Iris's body or something, maybe he doesn't want her around.
I'm still wondering what happened to Inca, who probably saw the same horrifying sights as Shinra.