All Her Fault Episode 7 takes the viewers six years back and reveals that Carrie is more than just a mysterious nanny. Her name is Josephine Murphy, who was pregnant and expecting a child with her boyfriend Kyle at the time.
Kyle starts to deal with drugs to offer a more secure future to the child. This quickly collapses as he gets arrested for that, leaving Josaphine alone and pregnant. It is shown that Josephine somehow loses her child, maybe due to stress and shock after Kyle's arrest.
However, later in the episode, another set of flashbacks shows Josephine giving birth to a healthy child, Noah, but being involved in a car crash accident. When she wakes up in the hospital, she is informed that she lost her child. Despite claiming she can listen to her child crying, doctors discarded it as some delusion, as they believed the cry was of another child who survived the same crash, Milo. Read on to know the complete recap of episode 7, All Her Fault.
Here is what happened in All Her Fault episode 7
Josephine, after losing her child, starts to live with her cold and judgmental mother, Irene, where she suffers exploitation and constant belittlement. After 5 years, she began working with her father, Rob, who is also a loan shark. Rob, as part of his collection trips, was once targeting Colin.
It was on Easter when Josephine accompanied Rob to the Irvine ranch, and there she met Milo unexpectedly. Their exchange was brief, but it somehow healed Josephine's broken heart, and she wanted more. Her obsession with Milo grows as she begins stalking the Irvines. She buys toys for him, which is when Kyle realizes that she is spiraling into instability.
Josephine plans a way to infiltrate the Irvines' world in All Her Fault

Josephine reinvents herself as Carrie and makes a plan to enter the Irvine world. She gets a nanny job with Jenny, befriending Anna, Milo's mother's friend. Eventually, her plan to kidnap the kid begins to take shape when Jenny befriends Marissa Irvine.
She wanted Kyle to help her in the abduction, confessing to her loneliness and guilt. She convinced him, showing this as their opportunity to have a life they were snatched from. Together, they successfully abduct Milo, telling him it’s a fun vacation.
Initially, Milo enjoyed the ride, but soon he started to ask about his mother and family. This is when Kyle's heart melts, and he urges her to take him home. Josephine desperately turns to her estranged father, Rob, who agrees to help but also plans to ransom Milo for cash. He becomes the caller who demands money from Peter Irvine.
Kyle's identity is out in the open when Rob shoots him and orders Josephine and Milo to hide in his motel. Milo, missing his mother, asks about birthdays, prompting Josephine to gently explain their meaning, one of the few moments that shows her remaining humanity.
Rob then returns and lies to them that Kyle ran away. He also asks Josephine to buy Milo a cake. When Josephine is gone, Rob hides Milo in the bathroom and is killed. Josephine returns to see Rob's dead body and Milo missing.
This is how episode 7 of All Her Fault ended with a huge twist

Another series of flashbacks returns to the screen, where we see Josephine had given birth to Noah. When they were travelling back home, they met with a car accident, and when she woke up in the hospital, she was informed that Noah had died. However, the truth was that Noah did survive but was swapped into the Irvine family. When Josephine claimed that Milo is their Noah, Kyle dismissed it initially but soon noticed a resemblance between the boy and Josephine's family.
Josephine, in the present timeline, sneaks into Irvine's house, where they are tense about their child, and detectives are asking them about Josephine. Josephine emerges amidst this with a gun, calmly and claims,
“He is my son. You have my son.”
Here, the screen cuts to black, leaving the viewers anticipating what lies in the finale, episode 8 of All Her Fault.