The evolving nature of the bond between Din Djarin and Bo-Katan is interesting to see. Bo is clearly at a low point. After losing her followers because she didn't claim the Darksaber she seemed to be in a state of despair. But it was interesting to see how Grogu snapped her out of that in order to bring her to help Din. She very quickly reverted back to protecting those around her - Grogu, herself and Din Djarin. And she seems to be opening up to his way of thinking. Sure, it sounded like she was mocking Din for wanting to bathe in the Living Waters of the mines. But the end of the episode made it very clear that the folklore was true. As a result Bo-Katan seems to have been shaken to her core, and her cynicism seems to have been shaken.
SIDE NOTE - How is it that so many people think that Din got pulled under? Call me crazy, but I think if you step into water wearing armor, you're probably going to sink.