I don't understand what you mean by three step character resolution

It's kinda existential - Kierkegaard-ian philosophy in roots - GRRM 60's counter-culture sci-fi incorporated a lot if these themes -- basically the tenets are:

For true eventual realization of "mature person-hood' with a valid moral system that recognizes the grim realities of a modern world, a man or woman needs to shed their child-like clay unshapened morality system - their first existence as a naive youth-- and go through great challenges in life - in a sort of period/developmental inner personally moral maturity process... this process is illustrated in the books by many characters -- as they become 'reborn' of sorts -- transfigured into a new identity -- and GRRM .. himself mostly agnostic .. might not agree with my interpretation, as I'm sure many other wont' .. it's not athiesim, as some claim GRRM is .. but it is spiritual without the formalized religion aspect -- so it is a little Marxist, a little Kierk-ian .. a little bit of this and that .. but it is a valid system of character/self reincarnation /revitalization ..

An underlying principle is that when a character dies, or has a life-changing event, they do not remain the same -- they change, and become 'less of themselves' .. or in some instances 'more of their true selves' - this is open for interpretation ..

Theon Greyjoy - 1. Child - Original identity was conflicted as he was born an Iron Islander, with perhaps the most basic of cultural influences - sea/pirate/rape/pillage/salt-wife/etc .. but he was socialized with what may be interpreted/defined by some as a 'higher or better, more advance' morality of the Starks - this is why young wards were take hostage, in part - in order to socialize them into the value system of the controlling Lord and then later returned (after war kills most of their family off) to their organic family to rule using the socialized values of the over-Lord .. so this is step 1 for Theon - he has a conflicted and rather complex thought process because by blood he is Greyjoy (nature) but by socialization (nurture) he is Stark -- really he is GreyStark .. 2. Reek - intermediate - His total existence and morality of everything he knows is broken down and challenged to the point he becomes a piece of clay again in the hands of Ramsay - as Theon/Reek he is nothing again - and Ramsay introduces the evils of the world (Ramsay is a great antagonist character who should eventually end up King Ramsay I is given the proper character arc- meh, maybe won't happen though) - so now as Reek, later in his existence Theon must dig deep in his sould to realize who he really is - thus he helps Jeyne Poole (Sansa) into escape, and returns to his Iron Born roots, where..
3. Theon - mature adult - rebirthed - is reborn again as a true hybrid GreyStark person - he has a family-blood loyalty but his mroality is further developed than say Eurons, or Victarions or even yara/Asha (if I remember correctl) - Theon is the advancement of the Greyjoy family morality - and if he lives he will bring those qualities to the Iron Islands - as within the micro-societies themselves there is a phase of maturity of sorts -- primitive -> intrmediate change -> apex change -- all is cyclic - Theon might even cast away the Sea Gods and take on the morality of the Old Gods - but this really isn't known yet

Illustrated as ChildMoralityTheonGreyJoy^{ReekConflictedMatureTheonGreyStark}

So we have other characters who in life or death are changed for the better or worse depending on their 'life need' - there are Gods of sorts who in the background hear the prayers of loved ones or magic practicioners and those prayers are answered through reincarnation/regeneration - typically in 3's .. not always, depends on if they are 'dead' .. or if they live

A few more examples - and it really depends on character good/evil orientation glidepaths and a few other facts - mostly story arc need for good/evil characters eventually becoming their *'true self' outcome through reincarnation/regeneration -- a person could put together an arrayed matrix of sorts with all the varying pathways from good to better to supergood .. or evil to more evil to supreme evil .. and/or good to questionable to evil .. evil to neutral to good .. so many combinations of how these characters could play out - and I'm sure GRRM is likely illustrating all the possibles through the vast number of characters ..

1JonSnowBastardBoy^{2JonSnowDemaGodLC3JonStarkgaryenSuperHero}

Jon could take the path of evil - not known yet

1DaenerysChildwDrogo^{2DanyTeenSemiFailedRuler3DanyTrueApexCleopatra}

Like Jon, Dany could take a path of evil - not known yet

1TyrionMonster^{2TyrionDevelopingMorals3TyrionTargaryenDragonBinder?}

1SamwellFatSlob^{2SamwellResponsibleStepFather3SamwellMaesterHero}

1ChildLadySansa^{2RapeSansa3PowerQueenSansa}

1CatelynGood^2LSH_evil

1SandorHoundEvil ^ 2HoundNotsoEvilProtectsSansa_Arya ^ 3BrokenManGravediggerGoodButSortaEvil

The hound is another good example - his root character is 'fighter' - so his character arc is a transformation of that archetype .. contrast him with his brother Gregor

1SupremeBadGuyGregor^2EvilRobot

1JamieEvilPushesBran ^{2JamieTransformsNeutral 3JamieGoodGuy}

etc