A few weeks after Kasya had been buried, William woke her up in the early morning to help him dig up the casket. It was raining outside, and the sun had barely come up yet so she could hardly see what she was doing. Not to mention the shovel was too big for her.
She only helped because she was trying to be good.
Something is wrong with Baby now. Elizabeth is what's wrong. She's so wrong, that she can't be fixed no matter how much everyone tries. She feels awful.
Elizabeth’s spirit got a bit confused, and she took on the appearance of Baby thinking it was herself. They can tell each other apart now, but it’s getting harder as the years pass.
She still loves her father, but she hates him too. She's boiling over with bitterness. Resentment that he never pays attention, resentment that he refuses to tell her what she needs to do in order to be worthy of love, that nothing she does ever seems enough.
Elizabeth recognized Michael as family, which Circus Baby misinterpreted as “creator” resulting in the William/Michael mixup.
After the bite, Elizabeth was terrified of Michael and hated that she had to sleep under the same roof. Every encounter they had was incredibly tense, and she was always afraid that she would be next to die if she upset him. When Michael was sent to watch Elizabeth at Circus Baby's, she quickly fled and ended up hiding in Circus Baby's room.
While Michael is being used as a suit, Elizabeth is keeps his spirit with her in a loop of happy memories. Given she wasn't alive long, Elizabeth can only take a scenario so far before she doesn't know how to continue it. when this happens, Michael will either subconsciously pick up the slack and fill things in for her, or she'll lose control and Mike will begin to realize that things aren't right. In the end, she wasn't able to keep it up and Party Favor was rejected.