Episode was confusing to me.. I might have to read a recap.
Greens
Aegon is barely alive after Rook's Rest, which necessitates the need for a regent to rule in his stead. The council chooses Aemond to rule as regent.
Aegon's dragon Sunfyre is long in the dying, meaning alive but probably nearing death.
Cole left a small amount of men to hold Rook's Rest after taking it.
Cole is surprised that the people of King's Landing aren't cheering the death of a dragon, but see it as a bad omen, and fear what Rhaenyra will do in response.
Alicent feels betrayed by Larys and Cole for not supporting her returning to being regent as she was at the end of season 1, Larys argues that it's to avoid hypocrisy, Cole argues its to save her from leading the terrible things to come.
Helaena asks Aemond if the cost he paid was worth it, implying she knows Aemond tried to take out his brother to become King.
Tyland Lannister says his twin brother Lord Jason Lannister is amassing a Westerland army to join the Crownland army that Cole has assembled.
Blacks
Rhaenyra feels powerless in her own council (similar to Alicent in hers) but knows she needs allies that the men of the realmr respect so she asks Corlys to be her hand.
Rhaena makes it to the Vale to meet Lady Jeyne Arryn. The deal Jace made was to send a dragon to protect the Eyrie in exchange for an army from the Vale but Jeyne is upset because all Rhaenyra sent were little hatchlings.
Daemon fails to secure the Bracken army with his dragonfire threats so he gives the greenlight to the Blackwoods to slaughter the villages and bring the Brackens to heel, which succeeds, but at the cost of the rest of the Riverland lords who are outraged.
Jace goes to the Twins to convince the Freys to declare for Rhaenyra and allow the northern army from the Starks to cross safely, in exchange the blacks will give Lord Frey Harrenhal.
Rhaenyra and Jace decide to find dragon riders for the unclaimed dragons on Dragonstone, deciding to look through their histories to see where potential riders with Targaryen blood are located to enlist.
Daemon is making everyone refer to him as King. The implication is he is raising an army in his own name and is straddling the line of treason, as he battles his demons (and has a sex dream about his own mother
)
King's Landing
The blacksmith Hugh that was promised coin by King Aegon has not received it and his wife convinces him to flee King's Landing with their sick child. But the Gold Cloaks have locked the gates per Aemond's command.
Rhaenyra's handmaiden Elinda is sent to King's Landing to find a Gold Gloak Mysaria has ties to, who brings her to the chamber of Dyana, who was the serving girl Aegon assaulted in season 1. Mysaria said there is more than one way to fight a war and that propaganda can be used, so the implication is Dyana can be used for some end goal.
The people in King's Landing are starving for meat and fresh produce because of the blockade that Corlys and the Velayrons have established, which is blocking all trade into King's Landing.