The facade began crumbling in Episode 6 ("NSFW"). Throughout the season, Carl had treated the street game like a live-action video game where he made rules and pocketed thousands of dollars. His partner Nick was quiet, loyal, and physically imposing, yet deeply damaged. When a local neighborhood kid stole Nick’s prized bicycle, Nick tracked the boy down and struck him fatally with a hammer.
Carl arrived at the crime scene just in time to witness the aftermath: police sirens, blood on the pavement, and Nick sitting motionless on the stoop waiting to return to prison for life. The shock dismantled Carl's bravado in seconds. He was not a hardened cartel lieutenant; he was a terrified adolescent whose game had gotten a child killed.
The very next episode, "Pimp's Paradise," brought the physical dismantling of the persona. Carl retreated to the Gallagher house, curled up in his room, and asked Fiona to help him take his cornrows out. As Fiona combed out the tight braids, Carl sat in quiet, vulnerable defeat. Stripping away the hairstyle symbolized his decision to abandon the persona entirely, leading directly to the mid-season narrative where Carl goes straight.