The protective amulet is an object removed from the final version of Alone in the Dark: The New Nightmare.
In the game files you can find a 3D model with its description of the amulet of protection. Apparently it were a talisman Abkanis origin, similar to ' rescue amulet able to create a protective sphere around the user so as to protect it from the forces of darkness.
-If you avoid collecting the first Charms of Saving placed on a nightstand in the bedroom the elderly Lucy Morton, in Aline's storyline, will suggest you to take it as it is able to protect her life force. Presumably originally the object would have to be, in fact, a protective talisman.
-Bizarrely, its design resembles some of the glyphs of the Soul Reaver series, Legacy of Kain .