Warning: The following article contains spoilers for 86 Eighty-Six Episode 14, "Glad to Be Here," now streaming on Crunchyroll.
Shin and the former Spearhead Squadron made the decision to return to war in the previous episode. Episode 14, titled Glad to Be Here, briefly shows Shin participating in a training exercise at the Special Officers' Training School before he's once again in the thick of the war. After living peacefully for a short time, Shin is tragically back to his old routine: killing his fatally wounded comrades to put them out of their misery.
Despite Ernst making it seem as though the war was all but won, this episode paints a very different picture. Shin mentions in a conversation with Eugene that the war actually isn't going well and he doesn't think that's going to change. Eugene says it doesn't feel like they're winning.
Shin and Eugene reunite when they end up in the same class at the Special Officers' Training School, and Eugene is the only one who's openly friendly to Shin. Of course, Shin being a natural loner, this doesn't bother him. One student is particularly rude to Shin because he's suspicious of him and the rest of the former Spearhead Squadron. He tells some other students that it feels to him like Shin might be the infamous Reaper.
Shin, Raiden, Theo, Anju and Kurena are now members of the Nordlicht Squadron. They are in the 1028th Test Unit and their commander is Lt. Colonel Grethe Wenzel, who was referred to as "spider woman" back in Episode 12. She teams up with Frederica to surprise the group with their old machine pet, Fido, who they had to leave behind in Part 1. Frederica also returns Shin's pistol to him, courtesy of Ernst.
Frederica is the 1028th Unit's Mascot. According to her, Mascots are young girls who join a unit and eat and sleep with them. These girls essentially become a daughter or younger sister to the unit who, in turn, become willing to risk their lives for them. Frederica assists Shin from a relatively safe distance as he engages in battles.
Despite being in the same squadron, Shin hasn't been fighting alongside his old friends -- the war is so intense that the squadron had to be split up due to requests for help. Eugene, however, ended up in the same place as Shin. The two reunite once again after graduating from training school and eating together. They speak about how badly the war is going, and Eugene gushes about how excited he is to take her somewhere on his next leave.
After hearing how hopeful he is to return to his sister, Shin tells Eugene that he shouldn't have joined the military, emphasizing that he doesn't think their current situation in the war is going to change. Sure enough, the very next scene shows the aftermath of a battle in which Eugene has been fatally wounded. Shin uses his pistol to put Eugene out of his misery. He has tragically lost yet another friend in the war he so desperately wanted to return to.