The biggest flaw with Cthulu right now is that his presence doesn't count. He keeps the game from ending like a mafia, killer, etc. but can't actually win by outnumbering the town (i.e. getting into a 1:1 situation). He should count as one cult.

yussssssssssssssssssss

Way better. The other should be replaced with this one.

making people lose their votes would make lylos retarded, unless the entire madness on visit mechanic is reworked

Votes should not be invisible, they should not be possible. When you are insane, your vote should be like treestump. Just look at the logic behind it.
"He is insane? throw out his vote ticket, its all drooly."
makes more sense than
"He is insane? Well, have his vote stay anon. Yeah, just fold it up and put it in the box. So wipe off the drool first..."

It should be cthullhu visits someone, anyone isle visiting that same person is afflicted with madness...

he doesnt die he just gets bored and leaves

Cthulhu dying because a mere human gets killed? Ridiculous.

if cthulhu gets outed after making people go mad it doesnt really matter since A) he converted someone already B) gave another target to the cult (the madness guy) C) if he gets lynched, cult still lives and he still can win

I think this would work. Cause right now when someone visits Cthulhu they just vote for a person and Cthulhu loses easily.

This wouldn't work because after that one night, the town will know who the Cthulhu was because say the Cop goes mad one day, the next day he could just tell everyone who he was on. Also it would reveal all visiting roles in the game if they go on Cthulhu.