So, I personally think that house might be a bit of a struggle to pull off as well. I think you might be able to work it into a scarezone with a lot of little show elements. But, I'll play devil's advocate for a minute.
They've been doing a lot more puppetry lately. I'm thinking of things like we saw in Puppet Theater, Krampus' attic scene, and some of the bigger face characters like in Wicked Growth and Case Files. So, they've shown that they can pull that off, especially with some of Puppet Theater's scares.
On top of that, you can do a lot of scares without featuring the actual gremlins. Things like having Billy and Kate jump out and say a line, have Billy's Mom fighting a Gremlin in the kitchen (maybe with a fake Gremlin attached to her head/neck).
If they're able to stretch into New Batch territory, that opens the possibilities up even more. They could really play with the sizes of the gremlins, or even (maybe) create some of their own hybrids.