Just saying, but this is all happening simultaneously. Crunchyroll somehow fucked up translating numerals. So this is all happening on the 25th August. So that vision Frederica had was in the present, but somewhere else - the flag giving it away - San Magnolia. If you remember, her ability allows her to see the past and present of a person she knows.
And there’s a good reason why Shin fought the way he did. That letter he received being a big factor. But yes, Frederica was remembering the way Kiri (her knight) became, and she basically doesn’t want Shin to follow the same path. She also doesn’t want to lose her ‘older brother’, pretty much.
I know you may seem annoyed with Karlstahl (her ‘uncle’), but he’s pretty much a broken idealist. He’s seen what his nation and the people have become, and after years of being unable to change it, he’s pretty much accepted reality. I think the scene between them highlights how he’s always had her best interest in heart, otherwise how would she have gotten away with her ideal preaching back in cour 1? It was just that he was stuck between his duty and what he truly cared for. His ideology is vain, but he’s a realist too. A little pointer too, but his dirty boots pretty much shows he was one of survivors that went against the Legion way back then too.
This episode pretty much wrapped up volume 2. We’re in volume 3 territory now, and that end scene I was talking about pretty much shows you what happens at the end of volume 2. Volume 2 and 3 are a 2 part arc, pretty much.