While replaying Bella and Jill's paths, I noticed that at the beginning of episode 8, Bella has virtually no interaction with James. It feels like she's talking to him in a detached way, like she's imagining him.
He puts his hands on her shoulders, looks at her, but she doesn't hug him back, which is really weird. It's like James is a ghost to her, some elusive image.
I don't think she's hallucinating, it's probably some kind of post-traumatic state after his death, when relatives talk to the deceased to make it easier to deal with grief.
For the sake of interest I watched some of Bella's scenes with MC and what do we see? She actively touches him as if he were a living person, whereas at the beginning of episode 8 she avoids touching James, although it is logical on a couple in love.
Either DPC is so snowflake and afraid of NTR that he avoids such a natural thing as normal hugging and tactile contact between spouses.