Does this mean that a baby understands something of the Spiritspheres even this world and its parents?

When the incarnating ego actually enters the physical body a transition takes place from the Otherworld to this one. Memory cannot be impressed on the physical brain of the baby because that is blank, ready to receive impressions from the experiences of the current lifetime. Were it otherwise there would be confusion; but a baby understands much more than is generally thought and is very sensitive to parental thoughts and emotions. The baby is, however, completely handicapped insofar as it has no means of communication with others. As the baby begins to develop in the physical world it will lose much of its knowledge and awareness, and by the time the infant can effectively communicate, except in very rare cases its past awareness is blocked out by the accumulated layers of earthly experiences. While memory cannot be impressed on the physical brain of the baby at birth, nevertheless it remains on a superconscious level and can be subject to recall under special circumstances.