The Lehman representation of the frequency-dependent single particle Green's function is $$G(k,\omega) = \sum_n \frac{|c_k|^2}{\omega - E_n + i\eta}$$ where $n$ enumerates all the eigenstates of the system, $c_k$ is the overlap between $|\Psi_n\rangle$, the eigenstate to eigenenergy $E_n$, and the state $|k\rangle = c_k^\dagger | 0 \rangle$. And $\eta$ is a very small convergence factor, sometimes also written as $0^+$.
The corresponding spectral function is $$A(k,\omega) = \sum_n |c_l|^2 \frac{\eta}{\pi} \cdot \frac{1}{(\omega - E_k)^2 + \eta^2)}$$ This means we have Lorenzian with width $\eta$ at the eigenergies of the system, i.e., for small $\eta$ we see that the spectral function has sharp peaks for all values of $\omega$ that correspond to the system's eigenergies. (Note that for $\eta \rightarrow 0$, the Lorenzian becomes a $\delta$-function).
So far, so good. Now we can also write the Green's function using the self energy. If $\varepsilon(k)$ is the dispersion of the non-interacting particle, then the self energy is defined via $$G(k,\omega) = \frac{1}{\omega - \varepsilon(k) - \Sigma(k,\omega) + i\eta}$$
It is mentioned on many occasions that a self-energy with a non-zero imaginary part corresponds to a quasi-particle with a finite lifetime. In the spectral function, an imaginary self energy leads to a broad peak, and the width of that peak is related to the imaginary part of $\Sigma(k,\omega)$.
Question: At first, I have shown that the spectral function has infinitely sharp peaks at precisely the system's eigenergies. But later, I have shown that an imaginary self energy leads to broad peaks. How can I reconcile these two facts?
Related Question: If I find a "continuum" of states in my spectral function, how can I tell if these form a continuum of "true" eigenstates of the system or a bunch of decaying quasiparticles?
The motivation: In the Holstein model, we have a single electron on a lattice in the tight-binding approximation interacting with Einstein phonons of frequency $\Omega$. In the non-interacting limit, we have the non-interacting electron band $\varepsilon(k) = -2t \cos(ka)$ and then, beginning at an energy $\Omega$ above $-2t$, a continuum of a states corresponding to an electron of momentum $k - q$ and a phonon of momentum $q$. These are "true" eigenstates of the (non-interacting) system. But if I then turn on the interaction of the type $$ \frac{g}{\sqrt{N}} \sum_q c_{k-q}^\dagger c_k (b_q^\dagger + b_{-q})$$ I still have a continuum an energy $\Omega$ above the ground state, but now these are not true eigenstates any more, since the additional phonon can decay via the interaction term. But when they are not true eigenstates any more, then they shouldn't show up in the Lehman representation and hence shouldn't contribute to the spectral function?