I think I know The Woodsman's role in ep 3 is.
Before the release of ep 3 tomorow, I would like to make my guess on figuring out the woodsman in ep 3.
One of my guesses on what the woodsman was doing when you see him drag his axe against the wall. This has to be after the fight with Grendal and being exiled out of the bastonesr for hiding his relationship with Lily. With no hole to crawl to and no shoulder to cry on, the only way to gain respect, the one chance for redemption, to become the hero to end the big bad wolf. After confronting Bigby, he pushes him to the limit, the woodsman's life comes to an end. Thus earning the achievement "Belly full of stones
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Sorry about the format, im typing this on a phone.
My other guess was Holly breaking up the fight between The woodsman and Grendal, explaining the small time they have to burn Lily. During the Funeral, after Bigby brings the body, guessDum and Dee attempts to crash the party. Woodsman and Grendal come to the rescue and saves Bigby, resolving their conflict once and for all, and finally leading to their employer, The Crooked man.
Please comment on my thoughts. I know I can.be 100% wrong tomorrow but it never hurts to try I guess