Well, today's Villain of the Week are a group of people who used to be Borg. Even though they're not part of the collective anymore and therefore not really Borg, if it looks like a duck and sounds like a duck...
These pseudo-Borg (complete with upside-down Borg Logo flags) want to become fully technological beings, like their mentor, Lore. Exactly how this would perfect them was kinda glossed over in the episode, but nevermind.
As it turns out, the cause of all this trouble was Hugh, who (like any typical adolescent) blames everyone except himself for the current situation - when he chose to rejoin the Collective at the end of "I, Borg" and it 'infected' all the other Drones on his ship with a sense of individuality.
Perhaps it was this artificially installed self-realisation that caused none of the former Drones to remember their lives pre-assimilation or perhaps a plot development that hadn't been written yet (which doesn't explain why Locutus remembered being Jean-Luc Picard after he was seperated from the Collective) but it seemed to be a pretty big plot device to allow Lore to take control of this group of no-longer Borg and manipulate them for his own plans.