(Hikaru, I know what you meant, but I couldn't help but have fun with the exact wording of Karyn-as-Vanessa's wish.)
"I wish that Edward was married to Alyssa McMillan, and that my child Fred is now theirs. I wish that I'm living separately from Alyssa as a single mother, but a rich one who can live in comfort like Alyssa is."
The stone had a bit of trouble with those words of Karyn's. No one within its range - roughly the borders of Karyn's hometown - was named Alyssa McMillan. After Karyn had become Vanessa, the original Vanessa had become Alyssa Hughes, regaining her maiden name. The stone could have turned Alyssa Hughes into Edward's cousin, but that wouldn't be as fun as ... taking another Alyssa - in this case, an Alyssa Milne, the only other Alyssa in town - and turning her into an Alyssa McMillan.
Since Edward's family was the only McMillan family in town, the stone transformed Alyssa Milne into a member of an unrelated McMillan family out of town. That family was outside the stone's range, so life went on for them as usual. But Alyssa McMillan gained their signature features of red hair and fair, freckled skin, and all her belongings in town - personal photos, makeup, wardrobe - were altered to reflect her new appearance and heritage. She remembered parents and siblings who had no idea who she was.
The stone implanted memories of a wedding that never was, an event full of jokes about McMillans marrying other McMillans. "Lucky you," somebody had never really told Alyssa. "You don't have to change your maiden name!"
Alyssa's maiden name used to be Watt, but the Watts - who were within the stone's range - no longer remembered having a daughter with that name. She was a stranger to them now.
The wedding ring on Ken Milne's hand changed. He was still married to an Alyssa ... the former Alyssa Hughes. His children were still his, even if they now had a new mother and had become their own half-siblings. Their dark hair naturally lightened to blonde.
Fred McMillan became his new mother's son. His blond hair turned fiery red and freckles popped up all over his skin.
So no, the real Sarah's family was not quite back together. The marriage of Edward McMillan and Alyssa McMillan - once Alyssa Milne - had in fact ruined at least two other families - the Milnes and Watts - and altered the memories of many others in a chain reaction.
Vanessa and Sarah had no idea that their family had just gotten a lot bigger.
