You return to the place you witnessed Josh kill Daryl. Ventured into the forest, the one you followed Josh & Zach into as they chased the bleeding boy, back to the place they dumped the katana & body.

Josh was there. Katana in hand, slicing and tearing up Daryl's body. His face looked emotionless as he dug new, deeper wounds into the lifeless corpse. He didn't notice you.