A good example I think is around the 2:15 mark when Krystle flashes a perfect and insincere smile and says sarcastically "I doubt that they're false". Then her face turns fake-serious, as if talking to a child, and says "Besides... All I have to do is use your tactics..."I find this behavior to be very un-Krystle like. By which I mean early Krystle. Especially the patronizing part.
Now, one could argue that she had altered her fighting approach and adjusted to her sparring partner, but I think it's still contrary to the core of the character. Contrary to that inherent goodness that made her such a compelling (and difficult to genuinely pull off on screen) character early on. She doesn't have to be this vapid to take on a snake like Alexis.
And say what you want about season 3, but in 1983 Linda Evans was still able to pull off a well-timed pregnant pause with an accusatory look to deliver a more lethal threat than this fake posturing. Collins is a little better here, but both actresses seem to be on auto-pilot by this point.
I actually found this storyline to be full of potential in an otherwise tedious season 8, but to them it's just another clash between Krystle & Alexis. One of a million scenes they had done already. Same old, same old. And that's how it comes off on screen. Of course, I equally blame the people behind the scenes who should've recognized and corrected these acting choices.
My second issue with this scene - aside from the aforementioned filter - is the godawful season 8 background music. You may appreciate they had ditched the hysterical full-blast orchestral score of the preceding years, but to me it's exactly the same thing, just on the other side of the spectrum. It's like - why even bother to have any music at all if you're going to play this barely audible ill-timed crap?
You should be able to tone the music down, but still deliver effective transitions between flashbacks and the primary scene, enhance tensions in the dialogue and then pack a strong final punch for the freeze frame with the yellow letters. This? It comes off like a score in a low-budget B-movie. It's very badly done and it only helps drain more energy from an already problematic scene.