I think we can safely assume that everything Ludo did in episodes that don't feature him talking to the wand, like Wand to Wand and Bon Bon the Birthday Clown, is a result of him having gotten gud from his time in the wild. He came up with those plans himself.
I think he knows for sure SOMETHING happened after reading the book (Glossaryck's gone, wand doesn't work, implied toll on physical and mental health) but not what it is. At this moment he's unaware Toffee was his wand and is possessing him.
I was disappointed they went that route at first, but I think the finale episodes left us with some potentially interesting paths to take it. His reaction to finding he's been used by Toffee again, the way the possession and presumably eventually being thrown away will affect him, and what path he'll take after this.
I think the fact that Toffee still sees and uses Ludo as his pawn will be part of his downfall, as Ludo as gotten more competent outside of his influence and is now likely to switch sides in the future.