You have two separate stories in two different episodes and they aren’t related. It’s a bit like “First Love“.
The first story is about the relationship between a shy new girl in class and an asshole. He is quite the asshole. He orders her around, teases her and actually ends up cheating on her. Ew. But then towards the end of the first episode, he sees the errors of his ways and decides not to be a total retard, and treats her right.
The second episode seems to step up both the animation and the female’s character design. The opening scene, again, was really awesome and the filters they used and the animation quality was pretty awesome. It turns out to be a… no, it’s not actually a dream sequence, but it plays out like one, and so the quality drops again when we come back to real life