One thing I especially like in this episode was the use of music.
I think there's one track from INLAND EMPIRE, called Mansion Theme, around 29 min, when Diane talks outside the jail to Cole, and then it's cut to Mr. C. being put back in his cell, I am pretty sure the music used in these two scenes is from the INLAND EMPIRE soundtrack.
Good ear! I think you are right, except for that fact that it seems a little more muffled. This totally adds to the idea of David Lynch incorporating all of these motifs from his body of work into this 18 hour epic.