The main problem is they haven't committed to turning one or the other heel. Sometimes Bayley throws the first punch, sometimes Sasha does. Sometimes Bayley abandons Sasha, sometimes Sasha leaves Bayley. It seemed for a while they were heading toward Sasha being heel, but last night Bayley attacked like a heel would - way past the point of necessity and into cruelty.
They need to commit to turning one or the other. Personally I think it should be Bayley. Like I said in the Raw thread, Bayley has never been heel for the entirety of the time she's been in WWE. She's in need of a character refresh and it would keep the feud from just being a repeat of what they did in NXT.
What I'd do is have the counseling segment go completely left next week and Sasha and Bayley get into a massive fight. Have the Riott Squad show up (since they've been involved in this whole thing for a while), but they don't get physically involved. Instead, Ruby Riott contradicts the counselor and goads them into fighting. Make sure Bayley throws the first punch. Afterward, Constable Corbin shyts on Angle for this idea and Kurt finally admits it's none of his business and makes the match for Extreme Rules.
Following week, Sasha comes out and cuts a promo where she says she probably isn't a great friend. She says she did at times take advantage of Bayley, and she's sorry for that. She's sorry she didn't value their friendship enough and admits she could have handled things different. But one thing she won't apologize for is thinking she's better than Bayley, because she is. She's better than Bayley, Charlotte, Ember Moon, Asuka, Alexa Bliss, Carmella, Nia Jax, and even Ronda Rousey. She's the best damn woman in the WWE - she's the Boss - and she'll never apologize for that. She says that if Bayley really wants her to prove that she's the best once again at her former friend's expense again, she'll be happy to.
Then Bayley's music hits and she cuts her own promo where she says that arrogance was always Sasha's problem. She's always looked down on Bayley, even after Bayley's beaten her more than once. She's says Sasha doesn't have to apologize; she says it was her fault for not realizing what a smug bytch Sasha was earlier. She could work shoot it and say she was always the only one defending Sasha when everyone complained about her bad attitude. She thanks Sasha for showing her you can't have too many friends in this business. She says that at Extreme Rules, she'll beat Sasha again and finally be done with her. She tries to continue talking, but at this point, Sasha has left the ring and charged at her. The two start brawling and the refs have to come out to break them up.
Meanwhile, the Riott Squad are watching this backstage and laughing their asses off at the chaos they've wrought. Ember Moon, goodie good that she is, comes up and chastises them for taking joy in this friendship breaking up. They laugh at her too until Ember informs them that she and Sarah have a match. Following the match - which Ember wins because lol Sarah - the Riott Squad meet up with Bayley backstage. They taunt Bayley as they do, but Riott ends by commending her for finally standing up for herself and ditching the dead weight.
Extreme Rules comes and Bayley and Sasha have their match. It's a damn good one, as these two are wont to have. Toward the end, the Riott Squad's music hits. They come out and surround the ring. Sasha takes a stance and looks at Bayley; she realizes the two will have to work together to fend them off. Bayley shakes her head and gives sign that she agrees to work with Sasha....then rolls her up for the win. Then the Riott Squad storm the ring and all four attack Sasha. And I mean they beat the fukk out her, even putting her through the announce table. The last scene is of Bayley standing over Sasha's unconscious body while the Riott Squad laughs in the background.
Note: Bayley doesn't join the Riott Squad here. That's no good for her or them - particularly Ruby, who would be instantly overshadowed in her own stable. Rather, this is Bayley taking advantage of the Riott Squad's natural inclination to fukk shyt up. They're pretty much hired guns, and their involvement is mostly just to get heat on them and establish them as chaos bringers beyond just breaking stuff. Ruby could even say they broke up the friendship that was a cornerstone of the women's evolution or something like that.
As for Bayley's character as a heel, I don't agree with people saying she needs to completely ditch her old stuff. She can keep the gear, but make the colors more muted and add more black trim. Make the designs on the gear "twisted" versions of what she usually has: broken hearts, evil robots, stuff like that. Ditch the tube men, but her new theme is just a remix of her current one ala Nakamura. Switch to a regular ponytail or have her wear her hair down. Personality-wise, she would be a lot more violent and spiteful. Less hugs, and if she does hug someone, it's usually accompanied by a threat, backhanded compliment/insult, or sneak attack. She's still all smiles, but it would be more like heel Sami Zayn is where it's mostly to be obnoxious or taunt the crowd. She doesn't make nice with heels or faces, since the crux of the character change is that she's done being friends with people.
She comes out on Raw the next night and cuts a promo on how she was always better than Sasha and she finally proved it once and for all. She thanks the Riott Squad for their help, but says she won't be joining their little group because she doesn't need them, Sasha, or anybody. She then starts running down the crowd for turning their backs on her. Ember Moon comes out and says Bayley is full of crap and is just turning into everything she used to hate. The two have a match and the commentators point out that Sasha is out this week because of injures sustained at Extreme Rules.
The following week, Bayley has a match against Alicia Fox, which she wins because lol Alicia. She then grabs a mic and cuts a promo running down Alicia and the crowd. Then Sasha comes out. No music; she just runs to the ring and she and Bayley start brawling. Bayley tries to escape but Sasha is fully committed to this ass beating. Bayley finally manages to get away by incapacitating Sasah long enough to get in her car and leave the arena. From then on, it's on sight till Summerslam. They fight in the ring, they fight backstage, they fight in the parking lot. Kurt tries to book them in a match, but it never starts because they start fighting on the stage. Bayley is (kayfabe) booked for an appearance and Sasha shows up and they fight there. One night, Kurt and Stephanie are the ring dealing with an entirely separate issue and Bayley and Sasha come spilling out onto the stage, throwing hands. Steph chastises Kurt for not handling this and books Sasha and Bayley in a Street Fight at Summerslam.