When you watch Modern Family Season 7 Episode 3 online you can see how Dylan fits in with Dunphys after moving into Haley's room.
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Mitchell is offered a job from Jay's rival and when you watch Modern Family online you can see that Cam is uncertain of Jay's reaction. Dylan wants to move into Haley's room and Phil convinces Claire to allow it. Alex FaceTimes Luke because she's worried about her relationship with Sanjay. Luke listens because Alex's friend is changing in the background. Luke calls Manny to propose visiting Alex's college. Manny thinks it will distract him from the cheerleader Carly who didn't decorate his locker for the football season. Mitchell and Jay argue about whether or not Mitchell should take the job. Phil is scandalized when he walks in on Dylan and Haley in bed together. Gloria goes to school to yell at Carly for not decorating Manny's locker but Cam interrupts. Cam and Gloria argue about whether or not to be proactive. Mitchell arrives at Jay's rival's business. Earl refuses to let Mitchell work there but Mitchell convinces him to turn over a new leaf. Manny and Luke get to Alex's dorm room and she quickly realizes their true motives and tells them where her friend is. Phil decides that Dylan needs to leave but doesn't want to be the bad guy so he tells Claire he decided that he should respect her opinion to keep Dylan out of the house. Claire realizes what Phil is doing and tries to be a "cool mom" and lets Dylan stay. Mitchell gets into another argument with Jay about Earl only to realize that Earl is using him in his fight with Jay. Gloria goes to decorate Manny's locker but Cam beat her to it. Jay and Mitchell break into Earl's office but Earl catches them and then gets into a fistfight with Jay. Manny and Luke are hanging with college girls. Luke goes back to Alex's room only to find her sad about Sanjay dumping her. Luke tries to comfort Alex. Mitchell and Jay share a nice a bonding moment. Phil snaps and tells Haley and Dylan that he'd rather have them sneak around instead of being outwardly affectionate. Claire gives up being a cool mom and kicks Dylan out. Alex returns home to sleep in her own bed only to find Dylan there.
On Modern Family Season 7 Episode 3, Jay's rival uses Mitchell as a pawn in their fued. Dylan wants to move in with the Dunphys.