Paraphrased from Alex's summary at the beginning of Episode 7.
They found the dead bodies, the Cypher was missing oh no! Then Dili heard a noise (oh no!) so the party all cuddled together under an illusion to hide from the noise, which turned out to be some arcane horror bullshit. Nix tried to steal its stick, but that did not happen so they fought it and tried not to go crazy looking at the ugly horror. Eventually Nix killed it by punching it so good, after it exploded they got some Cyphers from his possessions.
Then ChaCha saw a ripple and ran away. Everyone followed the ripple outside the dungeon, and found they were not where the thought they should be. The party was in a forest near the main road with zombies. Time had passed faster than it should, the ripple was gone but there were footprints into the forest so they headed that way. As they were going through the forest, as night approached, they saw a pretty tree. The tree was super pretty and Atalia thought it would be a good idea to sleep underneath the pretty, pretty tree. We ended with Atalia sleeping under the tree, Dili getting ready to bed down and ChaCha seeing dead, decomposing bodies under the tree.