I feel like Tinasha is mostly in the right in this episode. He had to kill her to break the spell. Sure snapping her neck wouldn't leave a good taste...but is there a way to murder her in that dream that would leave a good taste?
Plus it's Oscar's fault for not mentioning what happened. If he fessed up immediately she might have been able to break the spell without any excess trouble. He was rightfully chewed out for ignoring that he isn't invulnerable. She spelled it out that poison and psychological attacks wouldn't be guarded against and he manage to expose himself to both in one episode! It's also Lucrezia's fault for pulling that stunt. Shows the sociopath nature of some witches. She nearly killed someone to send a "hey there" message. I think Witches have exactly the right reputation in that world!
Also I love that this is the one time Lazar can keep his damn mouth shut! He causes nothing but problems and somehow manages to make the worst choice in every possible situation. That idiot couldn't have messed up more in this episode if he tried. Walks into an incredibly obvious trap, gets poisoned, reveals information that Lucrezia didn't need to know, doesn't tell Tinasha what happened and that led to Oscar getting nearly killed! This man is one of the greatest wastes of space I've ever seen
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I'm guessing the two mysterious people we saw are either time travelers or they can see alternate timelines. Heck maybe one or both of them are children of Tinasha and Oscar from the future. Although maybe not. While they didn't care for the guy that attacked them, they also didn't seem overly concerned that she got hurt fighting that monster.