As Lucifer states at the end he set the whole thing up. And the episode is presented from Dan's point of view. Except for the scene at the bike shop, when Lucifer is with the gangers comparing one ganger's experience with prison and his father, to his own. Everything is stated for Dan's benefit, except for this scene where Dan isn't present. It makes no sense that Lucifer would have created such a scene that isn't to fool Dan.