First, the important part: The Observer was seen walking past the reporter on television, about 22 minutes into the show.
As for the rest of the show: Extra bonus points for grossness in this episode. Nothing like worms coming out of a dead body to make you want to run for the hills, unless its worms in a live body waiting to come out. Yikes.
So, it’s likely the monster that was under construction was an attempt to make a weapon for the upcoming “war” they referred to earlier in the season. What do you think they were going to do with this thing? Transport it over the parallel universe that is encroaching on our own, and then just let it go?
I think they’re going to need to start explaining how all these things are interconnected. Unless you’ve been watching the show closely, I’m not sure you’d be able to guess that all these cases are interconnected.
Kinda reminds me of the old Fox show, “Millennium”. Good story, crazy things going on, but cancelled before we could get a good explanation for the over all story. Notice I said “good explanation”… not just something they have to throw together when they show ends abruptly. Let’s hope that doesn’t happen in this case.