Overall this chapter sets up the central conflict beautifully. We have the returned son trying to claim his place. The displaced son struggling to find his footing. The parents drowning in guilt. And the powerful older brother who holds all the cards. The dynamics are complex and everyone has valid motivations. I'm fully invested in where this story is going.
Lu Qingyue's character represents a certain type of superficial person I see in real life way too often. The way she's described as having "an aura that was out of reach" while simultaneously surrounding herself with suitors she neither accepts nor rejects shows her need for constant validation. She only saw Shen Chi as valuable when he was the top student, and the moment his perceived value dropped, she discarded him without a second thought. Her disappointment when Shen Chi didn't react to her "rejection" was pure narcissistic injury.
The story has a good balance of internal monologue and external action. Li Xuan's thoughts run parallel to the spoken lies, creating dramatic irony. We know he's faking, but the other characters don't. That tension is used well in every scene.