Instead of defining $P$ and $Q$ as the intersections of $FB$ and $FC$ with the circumcircles of triangles $MGN$ and $MHN$, let $P$, $Q$ be the intersections of $FB$, $FC$ with sides $JM$, $ML$ of the Varignon parallelogram formed by joining midpoints $J,M,L,K$ of quadrilateral $ABCD$.
Then since $JM$ and $ML$ are parallel to diagonals $AC$, $BD$$$\frac{AJ}{JB}=\frac{FP}{PB}$$ and $$\frac{BM}{MC}=\frac{FQ}{QC}$$But$$\frac{AJ}{JB}=\frac{CM}{MB}=\frac{BM}{MC}$$
Therefore $$\frac{FP}{PB}=\frac{FQ}{QC}$$ and $PQ$ is parallel to $BC$.
(Corollary: $QF=QC$ and $PF=PB$)
Since $\angle FGE$ and $\angle FHE$ are right, and $N$ is the midpoint of $FE$, then the circle with center $N$ and radius $NF$ passes thru $G, H, E$. Construct the circle and join $GN$, $HN$, $QN$, $QH$, and $GH$.

Hence, disregarding $P$ for now and working with $Q$, the task is to show that $Q$ lies on the circle through $M, H, N$, i.e. that $\angle MQH$ is supplementary to $\angle MNH$ in quadrilateral $MQHN$, making $MQHN$ a cyclic quadrilateral.
1) Proof that $\angle QCH=\angle QHC$:
Since $NF=NE$ and $QF=QC$ (Cor.), then $QN$ is parallel to $CE$ and perpendicularly bisects $FH$, and by SAS congruent triangles $QF$=$QH$. But $QF=QC$. Therefore $\triangle QHC$ is isosceles and $$\angle QCH=\angle QHC$$
2) Proof that $\angle HQL=\angle AEC$:
Since $\triangle ACE$ and $\triangle BDE$ have equal angles at $C$ and $B$, standing on common arc $AD$, and share the angle at $E$, the triangles are similar. Therefore, since $ML\parallel BD$, in triangles $HQL$ and $ACE$$$\angle QLH=\angle BDE= CAE$$And $\angle QHL=\angle ACE$ (1 above). Therefore$$\angle HQL=\angle AEC$$
3) Argument that $\angle HQL=\angle MNH$:
Since $$\angle HQL=\angle AEC=\angle GEH$$and$$\angle GEH=\frac{1}{2}\angle GNH$$we need to show that $MN$ is perpendicular to $\angle GNM$, and hence bisects $\angle GNH$. This is evidently so in the two boundary cases and in two intermediate cases.
Boundary case 1:
In the second figure, move $C$ clockwise until $CD\parallel BA$.
Perpendiculars $FG$ and $FH$ are now collinear. And since $GN$, $FN$, $MN$, $HN$, with $N$ now infinitely remote, are parallel to, or coincident with, $BA$, $CD$, then $MN$ is perpendicular to $GH$.
Intermediate case 1:
Now move $C$ counterclockwise until $H$ and $D$ coincide.

Since $\angle BDC$ is now right, $M$ is the center of circle ABCD. And since $\angle CAB$ is also right, $G$ coincides with $A$, and $GH$, a chord in circle $ABCD$, is perpendicularly bisected by $MN$ passing through center $M$.
Intermediate case 2:

Moving $C$ counterclockwise further until $CB\parallel DA$, $ABCD$ is an isosceles trapezoid, with $BE$=$CE$ in isosceles $\triangle BCE$, and $ME$ perpendicular to $BC$. Since $K$ bisects $AD$, $\triangle FAK$ and $\triangle FDK$ are SAS congruent, and $FA=FD$. And since $\angle BAC=\angle CDB$, and angles $AGF$ and $DHF$ are right, then triangles $GAF$ and $HDF$ are SAA congruent, making $FG=FH$ and $AG=DH$. By subtraction then, $BG=CH$, and again by subtraction $GE=HE$. Thus $FGEH$ is a kite, with diagonals $GH$ and $FE$ perpendicular, and $GH$ therefore perpendicular to $MN$.
Boundary case 2:

Finally, move $C$ still further counterclockwise until $C$ coincides with $D$ and quadrilateral $ABCD$ degenerates into a triangle. Since $FG$ is perpendicular to $BA$ extended, and $F$ now coincides with $H$, $GH$ is perpendicular to $BA$. And since $M$ is the midpoint of $BC$, and $N$ of $EF$, therefore $MN$ is parallel to $BA$ and perpendicular to $GH$.
If it were admissible as a principle, that a property which holds in both extreme cases, and in one or more intermediate case(s), must hold in all cases (counter-example?), we could continue as follows.
Returning to the second figure:

Since $GH$ is perpendicular to $MN$, then $MN$ bisects $\angle GNH$, making $$\angle MNH=\angle GEH=\angle HQL$$And since $\angle HQL$ is the supplement to $\angle MQH$, then $MQHN$ is concyclic and $Q$ is the point where the circle through $M, N, H$ intersects $FC$. And it was shown that $PQ$ is parallel to $BC$.
Conversely, therefore, if the circle through $M, N, H$ intersects $FC$ at $Q$, then $Q$ lies on a side of the Varignon parallelogram within quadrilateral $ABCD$, and $PQ$ is parallel to $BC$.
And the argument is the same working with $P$ instead of $Q$.