Escape from Witch Island - S3-E7
Plot hole: When Dawson, Joey, Jen and Pacey are stuck on Witch Island after dark-they are suddenly shown using strong flashlights to see their way. But they had never originally intended to be on Witch Island after dark, which was made clear when someone suggested leaving because 'it was starting to get dark'. They were only carrying light daypacks for their day trip, and Pacey even joked about how no-one had bothered packing any snacks. Therefore since no-one intended to be on the Island after dark, and they packed very light day packs without even food, why would they suddenly be carrying large flashlights? It's unlikely they would have bought them at the Witch Island Gift Store, as it wasn't shown and no-one seemed to pay for anything from there.
Answer: It's the same apartment Joey had in NYC. Comparing it to the beginning of the Finale; you can tell it's exactly the same location, furnishings, Plasma TV etc. Apparently Chris was only living with her at HER apartment, and now Pacey has taken his place at the end. I guess this implies Pacey successfully started his own restaurant business in NYC as he had dreamed, to be with Joey.