So regarding Terry. They sort of started laying the seeds of it right out the gate with him appearing.
It started with a massive takeout because Kreese had the two friends in Vietnam, one had a ponytail and was intended to make people think that was Terry as a misdirect until he was killed.
Turned out who we knew later as a confident powerful guy turned out to be Twig back then someone you wouldn't expect until their CO referred to him by his name Silver.
I understand you didn't recall much of the third movie by now but this had all the diehards like myself on the edge of our seats hahah. I had a feeling you hadn't realised during those scenes but it's not a big deal. I was glad they did a quick flashback to him from the movie in this episode to cement it.