This post contains spoilers from The Residence episode 2 from this point forward.
After Cordelia's discovery at the end of episode 1 that Australian Foreign Minister David Rylance (Brett Tucker) was wearing A.B.'s shirt and could have something to do with A.B.'s murder, The Residence episode 2 offers some context. White House chef Marvella (Mare Wiseman) got into an argument with A.B. over Rylance being in the kitchen and not being able to use flames for her wagyu dinner. Pastry chef Didier Gotthard (Bronson Pinchot) also took fault with A.B.'s no-flames proclamation.
But it's Marvella who screams and threatens to kill A.B. if he gets in her way again. Didier holds a glass over A.B.'s head like he's going to smash him with it, but he retracts. Clearly, A.B. had some enemies in the White House kitchen! As he tells Cordelia, Rylance went to apologize to Marvella and they ended up rushing outside to have sex. She accidentally whacked him in the nose with her head, hence the blood on his shirt.
Rylance saw other people outside on the White House lawn and feared being caught. When he came back inside the residence, he ran into A.B., who offered him his handkerchief, took him to his office, and gave him his shirt. Cordelia had noticed the differences in the shirt sizes and one of the buttons. He's effectively cleared as a suspect, but Rylance also overheard A.B. take a tense phone call then say after, "I am going to be dead by the end of the night."

The Residence episode 2 recap
Seemingly, Rylance convinced Prime Minister Roos (Julian McMahon) to stay back at the White House to reduce potential harm to Australia, all of which was orchestrated by Cordelia. President Morgan informs all of the guests that they have to stay and speak with Cordelia, who has all interviewees write their name on a paper to hold up for a photo. It's her way to keep track of 200 faces and names.
Eddie Gomez (Izzy Diaz) the gardener shares a story about overhearing A.B. loudly arguing with someone in his office and seeing Hollinger come down the stairs right after. Hollinger's interview is sketchy at best. The president's brother Tripp (Jason Lee) doesn't know anything, while Elsyie (Julieth Restrepo) seemed like she had a secret and looked at Bruce (Mel Rodriguez) the engineer. What does she know?
Hugh Jackman, who isn't really Hugh Jackman, also gets briefly questioned in Cordelia's speed round. Emily Mackil (Rebecca Field) the gardener noticed some issues with seating during the dinner. There's a difference in memory when it comes to a Secret Service van running into a gate and what A.B. was doing at the time. Kylie Minogue wasn't even supposed to perform, she was filling in. The state dinner was a mess.
Lilly Schumacher tells Cordelia that the staff at the White House made A.B.'s life hell, and it went further back than just this dinner. He didn't click with the Morgans, especially the president's husband Elliott (Barrett Foa), who says A.B. fought with Perry frequently. Everyone claims they didn't have an issue with A.B., but Marvella really gets the third degree for her threat. Angie Huggins (Juliette Jeffers) the painter spotted Marvella when she came back inside after her hookup with David Rylance.

While speaking with Angie, Cordelia discovers A.B. kept journals. Angie learned "things" about her supposed best friend that she didn't know before. She doesn't reveal exactly what, but A.B. seemed to feel bad things were happening in the White House. Perhaps this goes much deeper than anyone could have expected. Clearly, he knew a secret he probably shouldn't know and was killed before he could expose the truth.
The earlier call A.B. took in his office with Rylance in attendance was traced to a shed used by Emily the gardener and the grounds crew. While poking around, Cordelia finds a piece of broken glass that's the same shape as those in the White House. More importantly to Cordelia, she spots the falcon and it sparks an idea. She wants the body to be moved through the front for the entire crowd to see, for her to see them.
Cordelia takes note of body language as A.B.'s body is pushed through the crowd. She signals for Park to follow Didier, who leaves the pack first. Cordelia spots a blue chalk mark on his back. A flashback sequence reveals Didier picking up a bloodied cleaver from beside A.B.'s body, blue chalk smudging on his coat, and running off from the side door that locks from the other side. But there's always more than meets the eye.
Watch The Residence only on Netflix.