They didn't quite shoot/edit the bus scene properly, imo.
I was kinda confused also. I had to watch this whole episode 2x twice for it to actually sink in.
(And ask some of my relatives for clarity. lol)
The conclusion was... ALL of the scenes involving Famous and his mom (even the morgue scene) was his MOM having Flashbacks while she was riding home on the bus, at the end of the episode.
She had just identified his corpse, so all she could do was cry & think about his entire life.
Very Heartbreaking.
The last scene had Famous & his mom sitting on the bed together in his bedroom... but that scene happened in the past.
But seeing him alive at the very end gives the audience the impression that he actually was not dead at all. Just in hiding.
So they needed to cut back to Mom, in the present (on the bus, finally reaching her destination & getting off) before moving on to the next scene.
What they should have done to make it "crystal clear" is what the Sopranos did when Silvio killed Adriana for snitching to the FBI.
The car scene.
Adriana was "daydreaming" about driving toward Baltimore with nothing but a small red suitcase in her front seat.... in an effort to escape "mob life" & put her entire past behind her... but she snaps out of it... AS REALITY SETS IN

... and the camera cuts to "what is really happening" as Silvio turns off-road & she ultimately meets her doom.
If they had shown Adriana driving toward Baltimore in a daydream/flashback... AFTER Silvio shot her in the woods... then it would make everyone question whether Silvio actually killed Adriana or not.
And that's what Raising Kanan did.
In their own way, they showed "Famous/Adriana was still alive after Silvio shot her" so to speak.
Hence all the confusion.