Witch Creek Road S3 E11 Explained (Spoilers)
The episode picks up in the moment after the old man is shot. We see the short-haired demon show concern (looking shocked and saying, "No!"). The old man, still alive at that point, staggers into the next room. The Scarred Woman tells the Wolves to let him go; now that she has her heart, “Nothing else matters.”
The Scarred Woman breaks the jar on the desk and retrieves her heart. With some obvious discomfort, the Scarred Woman breaks open her ribs and places the heart back inside her. This proves not as easy as she had anticipated, because the moment she's reunited with the heart, she gains all of its memories and experiences: the first kiss between Charlotte and Richard, their wedding, having a child together, etc.
The Scarred Woman, frantic, rushes into the next room to check on the old man. She finds him dead. She takes him into her arms, apologizing, crying, pleading with him to come back and telling him they can finally be together. But it's too late: he's dead.
THE REACTION OF THE SHORT-HAIRED DEMON: Some readers were confused as to the short-haired demon's reaction to the shooting of the old man. Some helpful readers posted reminders of her previous relationship with the old man, including:
THE MAIN DEMON'S JOKE: As the Scarred Woman struggles to crack open her ribs and return her heart to its proper place, the main demon asks, “Can I tell you a joke?” The Scarred Woman, annoyed, says, “No,” and the main demon is disappointed.
This interaction was meant to show the general lack of understanding the Wolves have at reading a scene. The main demon, in her own way, is innocent, and while she may be trying to lighten the mood, she lacks the empathy and understanding to fully appreciate what's actually happening.
And yes, you will eventually get to see the joke – or, at least, the attempt of the joke – in the season 3 Q&A. It will appear as a deleted scene.
THE REACTION OF THE WOLVES: At the end of the episode, we see two of the demons standing in the background, looking rather menacingly toward a distraught Scarred Woman. The short-haired demon is nowhere to be seen.
This is due, in part, to the Wolves complete lack of empathy, and the fact that the Scarred Woman being overcome with emotion is, to them, a sign of weakness. The Scarred Woman is still the avatar of one of the angle gods, so the Wolves won't do anything to hurt her – but they will likely view her in a slightly different way moving forward.
THE CHILD: When the Scarred Woman is being assaulted with all of Charlotte's memories, it's revealed that they did, indeed, have a child. There have been multiple theories as to who this child might be, including Sara, Hailey, Detective Thompson, the old man's assistant and the Serpent (aka the guy from the bar).
The fate of the child will be revealed in Season 3 Episode 19.