Seems like they're preparing a new part of Time Temple.

That video is of the past, because there's a scene where Freed is talking about the "other heroes" as if he knows them closely -- something that Evan wouldn't have gotten the chance to do.


It also is played before the Mercedes tutorial starts, so it's sorta safe to assume that it's what happens before it...I think the inconsistency with dragon size is just that they couldn't have the gigantic dragon being in the video, it would pretty much eliminate space for any other character.