Continuity mistake: When Cordelia is putting on lipstick she uses the windows as mirror. In the reflection we see the top drawer of the cabinet is open the whole time, but it is later opened by Angel. (00:00:10)
Revealing mistake: When Angel stands at the cabinet with a file folder in his hand, you don't see the folder in the reflection in the window (which Cordelia uses as mirror to put on her lipstick) but you can see the cabinet. (00:00:20)
Answer: Everybody including Angel saw her. After helping them and then being left alone to talk to Angel, Cordelia says that the Powers That Be let her come back one more time to help them. After Angel gets a call saying that she died, he realises that it was her spirit that was helping them the entire time.