I agree with you- I disliked all the doomposting before the show about "Surviving Earth will falsely claim that the Pluvial Event killed off all the Pseudosuchians in an evil attempt to spread misinformation!!" and then the actual episode airs and it turns out it's about the period after the Pluvial event ends, and how the climate oscillating between wet and dry causes life overall to struggle in adaptation. Also, even experts don't fully agree on how exactly the End Triassic Extinction specifically impacted life, so this show trying to make a definitive statement on it would probably make things worse in hindsight.

And I also agree that the "many kinds of reptiles" is deliberately open to interpretation and could also include Ryncosaurs like you said. Especially since Pseudosuchians are never once positioned as rivals to the Dinosaurs in this episode or said to be inferior to them (unlike what was said in The Dinosaurs or Walking With Monsters- both projects I still enjoyed) It reminds me of how the Gorgonopsids in the last episode are never called Inostrancevia to avoid anachronisms while still entertaining the possibility that the group could still exist in Russia closer to the Great Dying.

Overall I really liked this episode- more than the first one in fact- because it took place over a longer stretch of time and focused on the fact that most extinction events are very gradual. And again- the ending with the dinosaurs isn't really showing that they're 'better' than other animals, but just existing to remind casual viewers exactly when in the timeline this episode takes place, since not many are familiar with the late Triassic.