To my recollection, this ep is the only time we've had Loki, on-screen, verbally expressing utter frustration and simultaneous heartbreak over the idea that everyone views him as a villain. In the past, he's always either accepted it, ignored it, or looked vaguely irritated (or possibly just resigned) with it, but here, we got him (while crying!) saying, "Right, of course, Loki is nothing but an evil villain, obviously I can't be trusted," and just. The twist of resignation, frustration, regret, longing, and pain in his voice, in his tone, on his face. Like just. *flailing*
I haven't seen this take yet but nobody better tell me that the narrative was trying to get the audience to see Loki as untrustworthy to the end. This was not like Loki calling himself a narcissist (which may or may not have been a case of him being an unreliable narrator, who knows). This was Loki very clearly saying that he knows everyone else sees him as the villain because no one has ever truly understood why he's done the things he's done, least of all Thor, but that's not who he is and yet even Sylvie - whom he's not only opened himself up to and let his guard down with, but who is part of him - turns it around on him the first chance she gets.
Not only is Loki not a villain (especially if you consider the original motivations for his actions, not the retconned ones), but he knows he's not a villain. Deep down, he knows that, but any time he tries to be more there's always someone around to remind him of "who he is." And he's just done. With an extra helping of heartbreak due to his feelings for Sylvie. Like. I just fucking love it, okay.