Finding Episodes in event sequence
The paper that you cited references two other papers that explain the method you are looking for here and here.  The second one is behind a pay wall.

But... these look like deterministic methods to me, and I suggest you use a machine learning method instead.  You basically need to separate events from each other using some sort of clustering algorithm.  I suggest you use DBSCAN and adjust the parameters based on whether you want every event to be assigned to an episode or not.

Another algorithm that might work well is simple k-means clustering with the addition of an elbow method or silhouette score to determine the optimal number of clusters.