There were slight improvements with the animation earlier in the season, it was still bad but better compared to last season, however the last 2-3 episodes had awful animation except several key scenes. They completely botched the attack on the witch hut and Gutts first battle with the Berserker armor.
About the recent episode:
For some odd reason they completely wrote off the "Moon child" first appearance on the beach. I hope that they simply decided to delay his appearance to after the group leaves for Elfheim in order to perhaps connect it more with Griffith's world transformation, the appearance of world tree and fusion between the astral plane and the materiel plane. Perhaps Miura changed his mind, and decided to connect the events together by having the moon child be the result of that fusion and some how be connected to the world tree and Griffith, which would make sense in a way. That's of course just my assumption. I just hope they didn't decide to change the story or drop the Moon light kid story line altogether.