Excellent episode. No notes. Okay, very few notes.
I think the episode serves four primary purposes.
1. It's just a solid, excellent, fun (for "horror" values of fun) episodes. For fans of the original Alien series, this is your love letter.
2. It establishes that Prodigy was the cause of the Maginot crash, and that Boy Kavalier knew the entire time. Which meant that, yes, he knew when he sent the Hybrids in exactly what he was doing.
3. It provides backstory and motivation for Morrow. I think it ... wasn't great at establishing the bond with the crew, but it did a great job with the humanity (vis-a-vis the daughter). I would bet cash money that this scar resurfaces in his interactions with the Lost Boys. In addition, I think it also establishes his loss of empathy/humanity (again, daughter) as well as his anger toward Prodigy which he rightfully blames for the loss of the crew.
4. Finally, we knew the Octo-eye was smart. We now know that the Octo-eye is wicked smart, and also? Does not like the Alien.
Final thought- I did not think that the bloodsuckers could be more gross. I was wrong.