They hinted at Miss Gracie being Lily. Aside from the voice, she wears a purple scrunchie in every video we see her in. She also continuously refers to herself as a "bad toy". Lily was by far a great character, with her creepy demeanor and her signs of insanity

Lily, during her final chase, kept saying that we are going into the bad toy box.
Lily had reached the point of insanity where she subconsciously repeated traits of her old identity, and even almost reverted to her old self.

Fun fact: Ms. Gracie and Lily Lovebraids are both played by Nicole Tompkins, who also voices Jill Valentine and Daniela Dimitrescu in the Residen Evil franchise

11:00 Lily is talking to her former self Ms. Gracie's body . With the quote  "  The sound of your voice is what I was born form.." and the decorated with flowers, you can see flowers around the body.

5:16 really scary how this is the moment where Mrs.Gracie finally view herself as Lily. At first it was from a pov of Mrs. Gracie trying to control herself from "Lily", "the voices" but slowly Mrs.Gracie herself view herself as Lily, feeling embarrassed for thinking she is Mrs.Gracie, after that, it goes to Lily's pov, and now Mrs.Gracie is the "the voices"

Lily's VA had some RENT DUE.. it honestly was such a massive stand out in the chapter!!

Something interesting is that Lily seems to have developed Stockholm Syndrome with the prototype; she is jealous that Poppy is the prototype's favourite and is angry when the prototype ignores her.

I'm pretty sure the person that she's talking to in the last note is Ms. Gracie's skeleton because of the line "In your own little ways, I think you tell me that you agree." To me that seems like she's having conversations with it, like we saw when we broke into her room. Idk though.

This lore behind miss Gracie in the memory machine was the scariest part of this game by far

13:11 I felt that was such a dumb way for Lily to die, she had hair that can stretch in yards and she couldn’t have grabbed something before she fell? It was such a lazy death, but also maybe she’s not dead.

12:29 she calls herself lily-silly-billie-tillie because ms.gracie once says "don't be a silly billy". Also she seems to be referring to her own dead body or something, although the "hair" part is confusing, there WERE some parts that said "did you know your hair keeps growing after you die" so who knows, the skeleton could still have had hair when she found it.

Whoever voiced Lily knocked it out of the park! She manages to make Lily and Gracie, who I'm guessing she shares a VA with, sound surprisingly different.

Also, I wasn't expecting Lily to die via falling and crushing. I honestly thought she was gonna get get her hair ripped off

Lily is a prime example of design being judged too early.

I actually love the detail where lily is trying to fight against Gracie a little bit.  Like fighting for control.  Gracie's "please let me out" "I wanna go home" and Lily wanting to do tea parties and brushing hair is a really good detail where she's slowly losing control and Lily is just...well fully Lily.  There's no more miss Gracie.

4:39 but fr tho, i got some "Norman Osborne talking too Green Goblin(himself)" vibes when she started talking to herself

11:09 Lilly is referring to her- Ms. Gracie's- corpse, that she found in recycling. She was born from that voice. She can still hear her sing sometimes

I wouldn't be surprised if in Chapter 6 we meet more toys that were previous Playtime Co. Employees who suffered the same fate as Lily. Being given the sweetest form of karma imaginable by the hands of their own creations.

Kinda off topic with the video, but the voice acting in this chapter is actually phenomenal, especially Poppy and Lily's/Miss Gracie's VA. Both of their characters have to scream very loudly and realistically, and they pulled it off! When I heard both of those audio tapes, I actually got goosebumps and wanted them to stop in the middle of their screaming. I'm surprised they didn't strain their voice or vocal cords after those sessions! Like I said, it sounded too realistic, and that's what makes a good horror game. Also loved the video Sheep!

The funny thing is that being so bloodthirsty actually cost the prototype his revenge.

He literally personally saw to it that Ms. Gracie died in that isolation chamber, everything done to her afterwards is literally just abusing some complete rando who doesn't even have the original's personality anymore.

One thing I noticed was that (almost) all the toys got fur and became soft, like Gracie said in the video's, but Lily became a plastic toy. My thought about that is maybe they wanted to give her the opposite of what Gracie promised in the video's to punish her. To become a hard toy instead of soft and huggable. But then I remember that they already did had plans for the Lily "toy" and they maybe choose Lily for Gracie because it was almost ready to go. I found it interesting and wanted to share it..