The following article contains major spoilers for WandaVision episode 7.
WandaVision has been building up to another big reveal ever since Pietro (but not the familiar MCU version) showed up on Wanda and Vision's doorstep. Episode 7, "Breaking the Fourth Wall" has finally delivered on that promise, giving viewers something they expected all along, but making it no less surprising or satisfying. At the end of the episode, as Wanda descends into a spooky basement lair, nosy neighbor Agnes finally reveals herself as none other than Agatha Harkness. On top of that, she gets her own theme song revealing that she has been behind everything so far.
As the jaunty theme song explains, "it's been Agatha all along." Viewers are treated to a montage of moments where Agatha was secretly manipulating events. One of the most important ones being the arrival of Pietro. Judging by how that quick scene plays out, this Pietro is either just some sort of vision being conjured up by the powerful witch or he is something else altogether. Of course, just to hammer home that Agatha really is evil, she concludes her theme song by admitting that she actually did kill Sparky. With the series big bad finally showing her face (or at least the face behind the nosy neighbor façade), viewers might have a few questions.
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In the world of Marvel Comics, Agatha is a powerful witch, one who was around for the original Salem trials (though she managed to make it out alive), and who may even be far older than that. She made her first appearance as the nanny for none other than Franklin Richards, the son of Reed Richards and Sue Storm of the Fantastic Four. She even managed to defend the child from the Frightful Four when they launched an attack on her home.
Eventually, Agatha's story becomes intertwined with Wanda's. After Agatha is killed by the residents of New Salem, Wanda channels the witch's energy in order to become pregnant with her and Vision's children, since she otherwise would not be able to accomplish this. Upon returning to life, Agatha revealed to Wanda that her children were just parts of Mephisto's soul (Mephisto is basically the Marvel equivalent of the devil). After he reabsorbs them, Agatha chooses to wipe Wanda's memory rather than battle Mephisto. Later, in the "House of M" storyline, Wanda remembers her children, and when she confronts Agatha about the truth, it's suggested that Wanda kills her.
This is actually a good question. As far as her comic book history suggests, Agatha is not actually evil, and yet she has been positioned as the main big bad in WandaVision. There may be a few explanations for this, but some of them may be somewhat convoluted. It's possible that Agatha is being manipulated by a force more powerful than herself, such as the previously mentioned Mephisto, or possibly her son, Nicholas Scratch (oddly enough, this is also another nickname for Satan).
While he has never been close to being mentioned in the show, Nicholas Scratch is a villain who has affiliations with both Mephisto and a familiar MCU baddie: Dormammu, the ancient God-like figure who was bested by Doctor Strange (who fans speculate will play a role in this story as well). It's hard to say for sure exactly why Agatha has been positioned as a villain when she has actually been more of a force for good in the comics, but she is a fairly obscure character. It's possible that the Marvel Studios team has decided to reposition the character as a villain because it makes more sense to the overall story of the entire MCU.
Right now it's all just speculation, but one thing Marvel Studios does exceedingly well is adapt the stories from the comics in new and unexpected ways, altering origins and classic storylines just enough to be recognizable while telling a new version. With this version of Agatha Harkness seeming to have control over Wanda, it may be the plan to twist the story of Agatha training Wanda to use more powerful magic in a more nefarious way. Much like Jean Grey and the Phoenix, the MCU may be setting Wanda up as a villain, albeit one that is being manipulated by a more powerful force.
Hahn has already proven her Marvel villain bona fides by providing the voice of Olivia Octavius in Spider-Man: Into the Spider-Verse, but she has just been so great in WandaVision. First, she perfectly embodied the sitcom neighbor role, channeling her comedic energy into Agnes enough that it would be hard to think that she is actually a manipulative witch. Then, when the reveal finally does come, Hahn doesn't hold back on the menace, flipping the switch on her character perfectly.
It's going to be a lot of fun watching her finally get to lean all the way into the villain role, and with only two episodes left, WandaVision is likely about to get very intense. Paul Bettany did promise fans a big Marvel finale, and it's hard to think of something more intense than an all-out battle between two powerful witches.