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So after Hugo leaves, it follows the canon of Varian getting in the same cell as Andrew, he gets sad again and then Rapunzel comes back all that fun stuff.
But now Varian always has the memory of Hugo and a sort of longing for him and he's a wanted suspect in Corona now.
Also, for the Varian and the 7 kingdoms portion, they have a moment where it's like "WAIT A MOTHER EFFING SECOND I KNOW YOU" but they kind of hide it from Nuru and Yong (that's their names, right?) (I don't remember a lot of this stuff L) and eventually Varian's like "okay fine when I was in jail Hugo was a fake guard and we were a little gay but he ran and I stayed"
And that's about it baybey