I finally managed to almost finish the third episode. But not quite because some major bugs got in my way.
It all started after visiting the clock tower for the first time. I visited the top, had some conversation, picked up moonshine jug (not filled it, nor used it) and car parts, went out to a festival area and had to quit and save at this point. When I returned I noticed that something very odd was going on because clock tower was blown to pieces. I managed to play the game all the way to the point where I had to force feed the main culprit. Unfortunately Meeks was still denying to pick up the funnel so I just cannot finish the game.
I'm beaten. Ballbags!
Not a huge loss, though. I just watched the ending sequence from a walkthrough video.
Because scripting was out-of-order there were some graphical glitches, like Meeks and left side of beer tent were still visible in the police tent area. There were also some other bugs during the episode, like I could pick up another pair of rubber gloves. So, I'm still holding a pair of rubber gloves (and jug and a bumper) at the end of episode.