Let's ignore for a moment why you seem to think we're already at LYLO - even though, as Yak pointed out, that's pretty weird. Let's also ignore how you've been pretty defensive of Takhisis today - well, ignore it for now, it may well be pretty relevant tomorrow depending on how Takhisis flips. Let's also ignore that if both Arakhor and Takhisis are telling the truth, that means that three separate power roles - a Watcher, a Thief, and a Wolf of some kind - all visited Johanna on the same night, which is a giant coincidence that would just happen to leave Takhisis looking guilty but actually being innocent. Let's ignore that suspicious stuff and instead ask a question: why do you think we should ignore the watcher claim?
Right now we essentially have two players claiming town-aligned power roles - Arakhor as a Watcher of some kind, and Takhisis as a thief, and Arakhor revealed themselves because they claim they saw Takhisis visit Jo last night (the night Jo died). Regardless of how you feel about Arakhor or Takhisis this game, doing anything with today's lynch other than testing the claim is ludicrous. At this point, we're left with two choices: we can kill Arakhor to see if they're really a watcher (instead of having them maybe around to Watch tonight), or we can lynch Takhisis to see if they're really a town-aligned thief (instead of having them maybe around to...steal our night powers? Why is this a thing we want even if they're town-aligned?). The alternative to either of these is "ignore the claimed-watcher who was watching the person who got murdered last night".
In my mind, the idea that both of them are telling the truth and Johanna was randomly visited by three of the other eight players in the game on the same night is incredibly unlikely, bordering on absurd odds. More likely, far more likely, is that one of them is lying - either Takhisis got caught and is trying to weasel out by claiming a town power role, or Arakhor is faking a watcher-claim to take out a highly active townie. Which of these is more likely, I'm not sure, but from here we can see how results will inform further actions: if we kill Arakhor and they're a watcher, then tomorrow we kill Takhisis, but if we kill Arakhor and they're a wolf, then tomorrow we have nothing new to go on really; meanwhile, if we kill Takhisis and they're a townie thief, tomorrow we kill Arakhor, while if we kill Takhisis and they're a wolf, we start investigating you for coming to bat for them today. One of these targets gives us new information to go on tomorrow regardless of their alignment, while the other only gives us information to go on if they're innocent and we shouldn't have killed them. That seems like a pretty good reason to kill the one instead of the other, if you ask me.