It's a crime that The Owl House has been cut short from a full third season, but the writers have taken every last minute they have and are giving as much of the story as they can.
If you want a comparison point to another show, this episode is basically what you would get if you took Amphibia's "The New Normal" and "Escape to Amphibia" and smashed them together, with remnants of what were the filler episodes scattered in the middle.
That is not at all a bad thing, though. This episode brings you up to speed on what a lot of characters are going through and manages to weave their web of relationships and progress the plot all in one go. A lot of things that happen probably could have been their own A or B plots in an episode, but they cover just enough of the material to make it fit in the broader narrative.
Despite the fast nature of things, nothing gets shoved in your face. Everything flows very nicely from one point to the next without getting bogged down.
The plot itself is pretty good. Lots of nice character moments and good suspense. Nothing super mind-blowing, but definitely enjoyable. Overall, a high-quality episode and a good sign for what's to come with the rest of the season.