With Lucy's backstory covered, it only makes sense to follow it up with Kurama's. It actually works out rather well and makes for an emotional powerhouse of an episode.
It was weird seeing Kurama more chipper and upbeat. Considering his general demeanor, it was a drastic shift, but the change is justified as you see what he goes through after signing up for the program. When he first comes in, he's legitimately appalled at what the diclonii are put through and even calls Kakuzawa out on the process being inhumane. Kakuzawa retorts by revealing the true nature of the diclonii.
His assessment is confirmed as we see a SWAT team come across a diclonii girl. At first, I thought it was Lucy, but I don't think it was the case. It's a moot point as it is safe to assume that Lucy endured similar tests, which only helps you build up even more sympathy for her. In any event, the girl plays the team by acting like an innocent victim, only to turn the tables on them once their guards have been dropped. The girl is injured and taken to the facility.
Kurama decides that he should be the one to put the girls down. As he has already done it several times, he wants to spare others the burden. It is because of this that he becomes as callous as he does. Even telling the father of one girl that it is better to have the child killed than let it grow up and become murderous.
This attitude ends up biting him hard when it is revealed that his daughter is a diclonius. While he still feels terrible about it, Kurama is still insistent that the child be put down. His wife, however, begs to differ as she can no longer bear children and wants to raise the one that they have. As she dies in Kurama's arms, she makes him promise to save their child. He agrees and it appears that he's honored said promise as Kakuzawa uses that fact as leverage against him.
There is a bookend subplot that shows Nana trying to acclimate herself to Kohta and his crew. She is invited to join them, but initially refuses. I can't say that I blame her as they haven't been all that welcoming. By the episode's end, however, they warm up to her, she apologizes and agrees to live there, bringing the tenant count up to 6.
As the episode ends, scientists reveal that they are going to unleash "number 35", who is said to be the strongest of the diclonii. Her vectors are so powerful that they are visible and she is equipped with 26 of them, making her a force to be reckoned with.
The real meat of this episode comes from Kurama's flashbacks. Once again, we're given an emotional ordeal that is perfectly accompanied by the haunting rendition of the show's theme song. While there isn't a whole lot of time to flesh out his story, we're still given a pretty strong arc as well as twists that will have repercussions in episodes to come. I wasn't sure that another flashback episode would be effective this far into the series, but I was proven wrong. We're down to the final three episodes. It should be interesting to see how this all plays out.