As for Episode 5... Iroha's endless suffering continues, as she pretends not to understand why putting leashes on people is bad or what the soft cute boy is trying to say.
I am absolutely certain she knows at this point, since like. She clearly reacted, but in like. The negative way. By which I mean she froze up and then decided the solution was to pretend not to notice.
...Much like how I am doing my best to pretend not to notice how Friendy's transformation line is "let me hear your voice", how she says this episode that "a leash is a sign of trust", and how Komugi was asking for a leash she can wear as a person.