This was easily the most effective episode so far, with strong character interactions and superb direction. The choice to focus only on Brad's extended reaction to what was happening to Dox and the others, and on B-15's horror at discovering it, was extremely potent.
Still, on an overall conceptual level, I do still find the story arc underwhelming. I mean, we finally get the answers to the mystery of what Loki saw in the future in episode 1, and... so what? There's no big revelation, just Sylvie stuck in an elevator, Loki pruning himself, and the phone call (which happened out of sequence, since the phone should've been ringing before the pruning) just being Ouroboros checking in. It was set up as this big mystery, but it's all pretty meh, just an incidental moment in the middle of a bunch of other stuff. Really anticlimactic.
And yeah, I think some kind of reset where the dead characters are alive again is inevitable. Really, I have to wonder if the destruction of the Loom is that bad. Won't it just mean that timelines will evolve naturally? Maybe the characters will just wake up in their own variants and Mobius will learn who he was before. Though I don't know how or why they'd be brought back together.
I also find the whole "ticking clock" emphasis this season when it comes to problem-solving for the TVA to be just...bizarre. They all have little time machines on them!
I had the same reaction. When O.B. said it would take a long time to retrofit the gizmo, I expected them to drop him, Casey, and Victor off in the timeline, then pick them up after a few weeks in the timeline and a few seconds in the TVA. Instead, it was just an excuse to let the other characters go have arguments about pie for a few minutes.