Episode 7 of "Overcompensating" unfolds with the students of Yate embarking on a Thanksgiving weekend hiatus. Carmen, whose parents are absent, finds herself an unexpected guest at Benny's household, thanks to his warm invitation. Meanwhile, the F&G list, though circulating, remains unnoticed as it fails to garner any interest among the students. Peter, mired in personal turmoil, decides against accompanying Grace for the weekend, prompting Benny and Grace to maintain the charade that Peter is ill while Benny, despite his absence, still participates in sports, now with his roommates' team.
At their family home, Benny and Grace are astounded by the drastic transformations their parents have wrought since Benny's departure. Each room has been repainted in a different hue, and the once-impressive 65-inch TV has been upgraded to a breathtaking 105-inch curved screen. Their father has stepped away from coaching, while their mother now works with dogs and pursues self-defense classes for self-improvement.
Sharing a room with Grace, Carmen is haunted by Catholic guilt stemming from her recent hookup with Peter. She's tempted to confess, but Benny urges her to keep silent, fearing that Grace's temper might flare up, revealing the facade Benny intends to maintain throughout the weekend to uphold his status as the golden child.
In Benny's room, a picture of him and a high school friend tucked away in a box draws his frequent glances. This friend is the same one who pops into Benny's mind whenever Carmen inquiries about his kissing experiences with guys. In the photo, captured in a car, they're almost locking lips, a memory that resurfaces frequently now that Benny is back home.
Later, Benny treats Grace and Carmen to a night out at a bar, reconnecting with their high school peers. While Grace is greeted with whispers branding her as a disgrace and comments on her weight loss and newfound sexiness, her high school memories are not ones she cherishes. Conversely, Benny is showered with attention and admiration.
As Benny revels in the continuous accolades, Grace and Carmen forge a deeper bond over their shared experiences of being overshadowed by their brothers. Grace unburdens her heart to Carmen, revealing the origin story of her nickname "Disgrace." During her ninth-grade year, she sent a nude photo to a boy on the baseball team. Though blurry and partially obscured by her bangs, the boy shared it with his entire team, forever etching the nickname into her identity.
Benny and Sammy finally address the elephant in the room—the near-miss kiss in Sammy's car. Sammy offers an apology, admitting he had misunderstood the situation. It transpired that when Sammy leaned in for the kiss, Benny had pushed him away and hurled an insult at him. Confronting Sammy, Benny unburdens himself, revealing the truth about his inner turmoil. High school had left him terrified, and those fears still haunt him to this day. His college experience hasn't been any smoother; he fell for a straight friend, leading to what became the most painful chapter of his life. But amidst this turmoil, Benny experiences an exhilarating first kiss with another guy, and Sammy is an unwitting witness in the bathroom.
Elsewhere, Carmen enthusiastically signs Grace up for karaoke. Following their passionate kiss, Benny and Sammy enter the karaoke room together. Connor, in a fit of mockery, teases Sammy about cornering Benny in the bathroom and mocks him. Benny, defending Sammy, lashes out and punches Connor. Connor retaliates swiftly, leaving Benny with a shiner.
During Thanksgiving dinner, Benny's father repeatedly voices his disappointment in Benny for the altercation with Connor. He had been planning to showcase Benny's achievements, but the fight forced him to cancel. He ponders the consequences if Benny had been arrested.
Suddenly, Benny confesses that he dropped out of business classes because he despised them. He's now at a loss about what career path to pursue. This confession sparks a chain reaction of honesty among the family members, but ultimately, their Thanksgiving feast is marred by discord. After dinner, Benny and his mother share an intimate conversation, where she reassures him that perfection isn't a prerequisite for life. Benny almost opens up to her about his sexuality but chickens out at the last minute, still too frightened to disclose his truth.
As the episode concludes, the family poses for a Thanksgiving photograph, trying to hold onto the remnants of normalcy. Meanwhile, Peter receives a summons from the dean regarding the leak of Flesh & Gold.
