It’s been a long time since I last read both the manga and the light novel, so I can’t say with confidence whether this episode picks up exactly where the previous season ended. However, judging from the discussions and events in this episode, it does seem to continue directly from where the previous season left off. As for the visuals, I’m not a fan of the changes to the character designs this season. I personally preferred the more vibrant art style from the previous season.