The problem is that this meshes with the Cleveland Show's continuity, not family Guy's, which is why it's confusing some people. In "Spies Remiscent Of Us" we see Peter using Cleveland's old house (namly his bathroom) due to it being unoccupied until it was bought by Chevy Chase and Dan Akyrod. It's kind of weird when the spinoff has better continuity then the original show, even though the whole Loretta plot is a leftover from Family Guy.
You know I had heard at the beginning of the season that one of the last eps would be about Loretta's death (including a short Family Guy crossover) and Cleveland having to come to terms with his former wife's passing. I didn't expect it would be an episode so focused on farts though. Really I know Seth MacFarlane and his production team is obsessed with farts, and know that probably extends to Michael Henry and the production team of this show, but really, putting 10+ jokes about it in a row is pretty bad. Also the bit with Roberta in the opening is coming dangerous close to Meg abuse territory IMHO, something I don't think this show should strive for. And sadly the most interesting aspect about this episode (Loretta's passing) isn't given the focus time it deserved. this needed a full fledged crossover (though the bits with Quagmire were good with him mentioning American Dad and calling Cleveland a Joey esque show. Hey Cleveland, why don't you bother proving him wrong by making your own show unique?) or at the very least more of a focus on Cleveland's life with Loretta beforehand. There were some decent moments (Tim and his wife preformence, Rollo joking about closing the casket with Cleveland in it, Cleveland Jr handling his mother passing with actual maturity and Cleveland not sure if Jr is being smart or stupid about it, Cleveland having survivor's guilt, and Loretta's ending montage) but that's all I can say about it. I really only watched this show for when hearing about the crossover and uh... that wasn't much of a reason to watch this show.