I really like the fact that this story is not about the dragon empress seducing/turning the hero into a romantic partner. it's more about the family dynamics and it's very well done here.
I didn't expect the monster to be that giant Hydra from that battle with the sleazy snake dude. The skull-octopi were mildly creepy, I thought at first they were sea ghosts or something. That was resolved quickly.... and this also solves(?) their money woes.
So I'm guessing Merma and Idy's parents are still alive and that's why they're neither getting adopted nor becoming servants. But I can settle with "distant adopted cousins" for our two girls.
Based on how Eve wondered about Lloyd's past I'm assuming we'll deal with his backstory and she'll get to know about it soon. I hope this next long arc will be good.
That recap by Loyd just reminds me of how rpg characters will gesture wildly in their games, when recounting the story to someone, especially the Mario RPG one where Mario shapeshifts as he tells his story.
I would say they are not responsible for the whole problem, the hydra may have ended up there as a consequence of Lloyd punching him but Lloyd didn't Actively drop the hydra in that exact spot, partial responsibility but not full responsibility.
Besides if we are going down the line of dominoes for the responsible party than snake shit was the one who summoned the hydra in the first place, so he is the one at fault not our adorable(-ly dysfunctional) family.