Last time we had an episode focus on two teachers back in their youth, and now this time around we get a focus on both of their apprentices. The location may be the same, but their experiences are different.

Elaina goes casual to be avoid being identified as a witch
In this episode, Elaina is once again reunited with Saya. The pair find themselves in a predicament caused by the same group of thieves we watched Fran and Sheila put a halt to in the previous episode, which affects the entire town.

Meanwhile, Saya sticks out like a sore thumb
This episode skips its opening theme, and things turned out pretty dark last time that happened. Fortunately, this episode is definitely one of the more light-hearted ones; there were plenty of moments throughout where I was laughing.

Saya’s sister, Mina
Remember back when Elaina first met Saya we heard about the latter’s sister? Well, Mina is officially introduced to us in this episode. She seems kind of cold towards Saya at first, but well…

Mina might just have a sister complex…
It may look like Mina is cornering Saya in that screenshot, but actually, the situation is a bit more complicated than that. This is a story about a witch, after all, so sometimes there is some magic involved.

Elaina and Saya discover that they have switched bodies
Saya in Elaina’s body was hilarious; we get to see some expressions that we would normally never see from our Ashen Witch. Amusingly, Saya’s reactions are all completely natural: she is not affected by the other thing that happens to be going on at the moment.

Saya (in Elaina’s body) seems to be enjoying the experience
Honestly the expressions we see from both Elaina and Saya in this episode are pure gold. They decide to work together to sort out a situation, though Elaina (in Saya’s body) doesn’t seem particularly impressed with Saya (in Elaina’s body) behaviour.

A couple of familiar faces show up
Putting the body swapping stuff aside, Elaina starts piecing together some important information about who her teacher’s teacher was. It has probably already clicked with viewers by this point, but well, Elaina has not been privy to the same information as us. Also, it seems like she isn’t quite ready to accept it just yet, either.

Now this is a rare side of the actual Elaina
This episode is capped off with a touching conversation between Elaina (in her own body) and Fran, which is nice.
This was a fun episode. I guess the setup from the previous one paid off here. I think Wandering Witch: The Journey of Elaina will have 12 episodes, so the next one is probably the last. As such, it will be a review of the whole series next week.
Saying that, this episode felt like it could have been a good note to end on. But we’re getting at least one more story about the Ashen Witch, so I’m no complaining.
As you said I see no way the finale can top the awesomeness that was this episode. Sexy tsundere siscon, vintage horny gay Saya, some background yuri and Fran and Sheila being cool as always. Add the conversation near the end of the episode and as you said the show could have ended there and it’d have been a grand way to wrap things up.
Even so, let’s give the finale a chance and see what they got.