Every time I see this movie, this part makes me cringe. When Candice Bergen's character is talking to Gracie after the talent show fiasco, she tells her to stay out of her way and if she ruins the pageant that she'll kill her. Are we supposed to believe this? You can't just threaten to kill a federal agent with no action being taken. And Gracie seems nervous and threatened, saying that she understands. There is no way that would have gone down like that. Bothers me every time.
I think that's the point, regardless of Gracie being a fed, Kathy is still the stronger and more intimidating woman of the 2. In terms of personality anyways.
Yeah but still. Stronger of the two or not, only an idiot would threaten a federal agent. There are serious consequences for that. Or at the very least it would not be tolerated. FBI agents are still an authority, they are members of law enforcement. It would be just like threatening a police officer. No tolerance for that. People who don't have the strength to assert themselves as authority figures in those kind of situations do not become FBI agents. This scene is not a plot hole, but a minor disturbance in the plot. To me, anyways. It just sort of upsets the character's credibility as a real fed, that's all that bothers me lol.
I think it was more of a sign that led Gracie to start suspecting Kathy Morningside as playing a role in the pageant scheme (which led to them discovering who her son is and foiling her evil plans). But you do bring a good point; it should've been executed better.
Well there is also a good chance that just like everyone else does with her, she misjudged that a woman like Kathy would never be involved in anything like that, but just maybe?
I'm sure Gracie knew and suspected Candace Bergen's character to be sketchy but she needed more proof and validation. So she played along with it until she got enough information from her "Girl Talk" with the other pageant ladies.