Dramatic Irony being we the audience knows more things than the characters in the play / show know. We the audience know how Wanda is being a bad witch and knows the total scale of her horrors but Wanda barely knows what wicked little shitty things she has done.
Prior to the end of Episode 2 Wanda knows nothing. She knows a little when Sword in beekeeper suit shows up. Then the shift of color for Wanda is waking up and is more aware of things. She is in a Lucid Dream not a literal dream asleep.
At the end of Episode 3 Wanda knows a little for she recognizes Monica’s necklace as a SWORD logo. She now knows she is in a hex but she is seeing this as the Garden of Eden for she has her loving husband and two kids.
Episode 4 outside the hex.
Episode 5 Sword tries to kill her family with a bomb on a drone. She is pissed but she does not know she is still hurting people in the Hex. She sees the hurt as outside forces always from the Hex invading her happy life.
Also Episode 5 Wanda and Vision fight but the fight stops due to Fake Pietro showing up. The spread of information is limited between Wanda and Vision. Vision knows bad things are happening and thinks Wanda knows everything but Wanda’s knowledge is limited.
Episode 6 Fake Pietro and Wanda talk, Vision and Wanda barely talk besides a “be good” , Wanda thinks she may be hurting people but she has no clue how this is happening and she has not seen the horrors Vision has seen at the edge of town.
Episode 7 Depression
Episode 8 Flashbacks.
Episode 9 Wanda learns the truth and at first doubts the stories for a Witch messes with their minds but as soon as she sees it is the truth she tries to let the town go but stops when it kills her husband and kids. Only for 20 minutes later to let the town free.
Wanda did lots of bad things but it is not like she has the same knowledge that we the audience know. This is called dramatic irony and is a key part of Greek Tragedy. Yes Wanda needs to Atone and she has not done that when she skips town, but hey Darcy did a hit and run where she too skipped town.
Fin with Rant.