The climax of Billy the Kid Season 2 revolves around a peace accord, a comedic notion when considering the number of lives lost in the series. Yet, the underlying message is that Billy the Kid himself remains alive at the end of "An Invitation," Episode 8, hinting at a probable Season 3. Who truly desires peace? A Western tale cannot be compelling when everyone is friends. Thus, while it's unsurprising that the efforts for reconciliation fall short, it's likely beneficial in the long run.
The idea of a ceasefire is proposed by Thomas Catron, who correctly realizes that the ongoing war benefits no one. Ultimately, the Regulators and the House will continue to kill each other until neither side has any men left, and no buildings remain standing in Lincoln County for business. Catron advocates for a peace agreement through Edgar Waltz, and surprisingly, both sides initially agree. Hands are shaken, drinks are bought, and there's a fleeting sense of joy as everyone feels for the first time since the war started that it might have ended.
However, Riley has other plans. After convincing several men to join him for supper, he encounters McSween's wife's lawyer on the street. Sensing an opportunity, Riley shoots him dead, and Billy quickly realizes that the promised peace is far from imminent.
Billy arrives at a similar conclusion as Catron and turns to Lew Wallace, the new governor of Lincoln County. There's a sense that Wallace might be sympathetic to the Regulators after firing Dudley for taking sides, so Billy writes to him offering himself as a witness to some of the House's crimes. If he's protected legally, he'll spill the beans. Wallace agrees to meet Billy and they quickly hash out terms, but when Billy leaves, he's immediately ambushed by Garrett and his men. It was all a setup.
For some reason, Billy didn't foresee this, and he ends up behind bars.
I won't claim that Garrett knew for certain that Dulcinea was about to spring Billy from jail, but I suspect he had a hunch. Garrett is intimately acquainted with Billy and knows that the House doesn't play by the rules. He understands, at a fundamental level, that Billy has defended himself and stood up for others, while the House has repeatedly committed atrocities and pursued their interests at any cost. Garrett aspires to be a just and honest lawman, but he is gradually realizing that this world has no use for such a thing.
With Wallace taking all the credit for what we now know was Garrett's plan, there are enough reasons for Garrett to allow Dulcinea to spring Billy that it's almost certain he saw it coming. Regardless, Dulcinea helps Billy break out, and Season 2 ends with him free and alive (for now), though the war for Lincoln County is still raging on. Garrett will likely be more determined than ever to bring Billy in, this time on his own terms, but we're likely to get another season out of the whole thing before they have their final confrontation.
