My friend told me that while he was sitting in my house he watched me turn into a devil, my chin getting pointier, my ears as well, and horns growing out of my head. I believe in god and have faith in a higher power, and try to keep good karma around me, and do good things, why would my friend see me turning into a devil, what does this mean

It means you both were high and need to stop it.

It means your friend was hallucinating from the mushrooms. Nothing paranormal about it.

It means your friend has Demonic Spitits dwelling in him God was warning you by giving you a quick glance at the other side You and your friend need to read and ponder the word of God (Satan hates the word)
I heard about two friends sitting at home doing some kind of light drug a small little devil character walked through the wall and joyfully exclaimed See your Mothers prayers aren't working!
I had the same thing happen to me a while back A friend of mine was coming at me with a marijuana pipe blown backward (SHOTGUN)I looked him in the eye and saw for only a split second a smiling pointy eared red eye demon character freaked me out!
Remember when someone was trying to manipulate Jesus he just said it straight up. Get away from me Satan.