Explain the outcome of the episode in "The Visitor"?

Max wasn't discovered during the inspection.... they all survived.

They listened to Nazi footsteps in the basement. There was the sound of measuring tape. Liesel could not ward off the thought of Max sitting beneath the steps, huddled around his sketchbook, hugging it to his chest.

___________________________________________________________

Papa lit a cigarette. Rosa took the scissors.
“You’re alive,” she said. “We all are.”