WARNING: The following contains minor spoilers for WandaVision Episode 7, "Breaking the Fourth Wall," now streaming on Disney+.
The ending of WandaVision’s "All-New Halloween Spooktacular!" saw Wanda expand the boundaries of her Hex around Westview in order to save Vision. In the process, she incorporated the S.W.O.R.D base and turned it into a circus. The choice seems odd at first since S.W.O.R.D is a counterterrorism and intelligence agency within the Marvel Cinematic Universe, but it is a form of revenge for Wanda, as she turns a powerful intelligence agency into a group of clowns.
The entire scenario begins when Vision decides to find out about what lies beyond Westview’s borders. Once he reaches the edge of Westview's Hex and breaks through the electromagnetic field, he begins to fall apart. At that point, Billy alerts his mother about the vision he had about his father being surrounded by soldiers.
Wanda, having warned S.W.O.R.D before to leave her alone, knowns instantly who the soldiers are. In order to save her husband, Wanda expands the Hex, not only incorporating Vision, but also sucking in most of the S.W.O.R.D team stationed outside the previous limits. S.W.O.R.D’s acting director -- Tyler Haywood, Captain Monica Rambeau and Agent Jimmy Woo are some of the few to stay out of the Hex.
The rest of the S.W.O.R.D base is turned into a circus. One of its technical trucks is turned into a Funnel Cake truck, while another reads "Fool the Guesser." Agents become clowns and mimes, and the base’s headquarters is now a circus tent. The choice for the transformation is not explained, and on the surface, turning the base into a police station or another intelligence agency might have made more sense, but there might be a simple, humours reason for Wanda’s choice.
The layout of the base oddly suits a circus with it having several smaller units and mobile tents that can be carnival booths and circus tents. Also, the individual agents who are turned into circus performers now wield as much power as a bunch of clowns, making them less of a threat to Westview. The transition into a circus is also a way to embarrass the agency, as they have been turned into a harmless group of carnies with no power and props instead of weapons.
What makes the entire switch all the more embarrassing is that, only seconds later, a car dealership is turned into a slightly older dealership. Other than that, there are no changes. Therefore, it appears Wanda's decision to turn S.W.O.R.D. into a circus was intentional, showing them just what a joke they are. It is only a quick scene at the end of the episode and hasn’t really played much into the story in the following episode, "Breaking the Fourth Wall," but the joke lands, unless you're loyal to S.W.O.R.D.
Written by Jac Schaeffer and directed by Matt Shakman, WandaVision stars Elizabeth Olsen as Wanda Maximoff/Scarlet Witch, Paul Bettany as Vision, Randall Park as Agent Jimmy Woo, Kat Dennings as Darcy Lewis, Teyonah Parris as Monica Rambeau and Kathryn Hahn as Agnes. New episodes air Fridays on Disney+.