The young Edgar Cayce was active in the Protestant Disciples of Christ (Christian Church). In the readings, Cayce basically said that all Christian religions, and the readings also strongly imply ALL religions, are no better than the people who fill the pews. It is the actions of the individual members of the congregations that are far more important to the soul than the belief system they profess as the truth.
254-92_9 For do not consider for a moment (for this might be carried on to an indefinite end) that an individual soul-entity passing from an earth plane as a Catholic, a Methodist, an Episcopalian, is something else because he is dead! He's only a dead Episcopalian, Catholic or Methodist. And such personalities and their attempts are the same; only that IDEAL! For all are under the law of God equal, and how did He say even as respecting the home? ""They are neither married nor given in marriage in the HEAVENLY home but are ONE!""
Professing allegiance to a church or creed and showing external expressions of that religion in rituals or in profess of belief in a creed does not necessarily indicate a more spiritual person or a better religion.
281-32_13 (Q) Are the Gentiles here those not seeking spiritual development? (A) Rather do the Gentiles here refer to that without the court. Not necessarily not seeking, but - remember the measuring rod He hath set. These do not change because if thou art worthy, Christ-like in the material, ye are Christ-like in the broader sense in the mental - and how much greater in the spiritual! The same as in those who are very devout without - as a Catholic, as a Protestant - as of such and such creed or faith; how much smaller have they grown within!
When Cayce said Jesus founded the Catholic Church, he was obviously using the term catholic in the sense of universal, and made certain that no one would misinterpret his words to favor a pope-dominated man-made Catholic religion. This makes sense because in other readings he strongly warned the A.R.E. founders about the dangers of denominationalism and declared that they were absolutely not to form a new ism, schism or cult (254-80; 254-87; 254-91; 254-92; 254-103; 254-105; 254-111; 263-98; 262-101; 412-13; 954-6; 1549-1; 2787-1).
452-7_13 (Q) Is the Roman Catholic Church the true Church founded by Jesus Christ through the Apostles? (A) This would depend upon who was asking for such. As we would give here, the CHURCH as founded by Jesus Christ was, is, the Catholic Church; [catholic church] but NOT the ROMAN Catholic Church! This has rather been added, as have most of those - in their activities - that call or classify themselves as churches. For, the true church is within you, as the Master, as the Christ gave himself: ""I to YOU am the bridegroom - I to YOU am the church. The kingdom is within YOU!"" Hence that which has been coordinated into the bodies in any activity is a representation OF that which has gathered together for coordinating activity in whatever field; but are most man made.
254-48_7 Now do not mix religious thought with religion, nor Christianity, nor brotherly love, nor that of Confucianism, or Brahmanism, or zoism [Taoism], or any ism, but rather that of the awakening of the individual to the truth of the divine heritage in each individual that may respond to that of creative energy in the universal forces of EVERY thought, and that may be applied in the workaday, the material, the spiritual, the social, the EVERYDAY life of each individual, whether as to its association with its OWN household or its neighbor.
364-9_5 We find the same contentions arising in that called in the present denominationalism, and each one crying, "Lo, here is Christ - Lo, this is the manner of approach - Lo, unless ye do this or that ye have no part in Him."
This is the reference to "the closest", and possibly seems to be more an indication that the Catholic Church evolved out of the Essenes and budding Christianity, not that it is the closest to the teaching of the Essenes, although there may be some truth to that in the sense that the Essenes may have been more oriented toward ritualism than are the Protestant churches. I am speculating here.
5749-8_34 For Ann and her daughter were questioned as to belonging to any, you see! Then it was not a choice altogether [the contractual marriage arrangements between Mary and Joseph] as that they were appointed by the leaders of the sect, or of the group or of the lodge or of the church; for this is the church that is called the Catholic now - and is the closest. These were kept then in that way of choice between them, and choice as pointed out by the divine forces.
This is the key reading. Gnosticism, with its belief in reincarnation and the nature of souls really coincided much more closely with the readings than the doctrine of many Christian religions today. Cayce traces this fact back the attempt by a group of individuals to find a shortcut to heaven and soul perfection that could be more easily sold to the masses. You might want to read the quasi-Gnostic document The Gospel According to Thomas.
5749-14_23 (Q) The eleventh problem concerns a parallel with Christianity. Is Gnosticism the closest type of Christianity to that which is given through this source? (A) This is a parallel, and was the commonly accepted one until there began to be set rules in which there were the attempts to take short cuts. And there are none in Christianity!