Yes. Exactly.
His “you have no place in this story” is a callback to her talking to Luke saying “I want to know my place in all of this.” Swapping the word story (though I’d argue it’s a common turn of phrase) might alleviate that “meta” quality. I disagree with the mirror being meta, to me it’s similar to Luke finding his own face under Vader’s mask. In both cases, the hero finds their own face at the heart of their fears.