Here are my thoughts, still haven’t watched it again, but this is what I came up with. Mostly based on my gut reactions and Fuzzy Feelings, and not plot (which was problematic in this episode) or dialogue, look elsewhere for dissections of those.
Eternal Disclaimer: This is how I see it. Doesn’t mean I’m right. Doesn’t mean I know where anything is going. Certainly doesn’t mean I think they did the best job they could of showing us this through the script, but this is what I see.