The Lake of the Clouds continues the “C” pill stories that were begun in episode 7. Owen is still his father’s #2 in their mob family business and working for the police as a snitch. Annie is still a half elf who’s showing her elven princess sister to a magical lake that they hope will lift a fatal curse from her. Gertie/Queen Gertrude is still working with Greta and threatening Annie. James and Azumi are still tense.
The episode picks up with Annia and Ellia back in their cave, arguing about the nature of reality. Annia has tried to explain the truth of the situation to Ellia, but she’s not buying it.
Ellia: So you’re telling me you believe that this is not the real world. That some other world, your world, is the true world. And that I’m confused who I am, as is every other elf, human, orc, dwarf, hobgoblin… The entire world is mad but you’re not? Is that what you think?