Kovacs had one of his first breaks in the previous episode, but took a downturn because he was not careful. He is now strapped to a Virtual table.
This singular episode answers a question we had been having: Where do the "Skins" regular, poor people use, come from? Apparently incarceration is virtual incarceration, Skins are passed back and forth, and maybe will never come back to the original owner.
The concept of "Double Sleeving" is examined here too. As is the origin of the Sleeve Kovacs is wearing, if he can figure it out.
Kovacs had been trained to be who he is regardless of what sleeve he is in. The source of that strength is shown here, in great detail.
And we start to see glimpses of who The Envoys really were.
Meanwhile, Ortega finds a "ghost", which she saw in the previous episode, there is no trace of him as she tries to find out who he is. Not to worry, this is not the last we will see of This Mystery Man. Nothing Is as it Seems.
I don't think we really understand who and how Kovacs is, until we see this.