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We now know that Lugia was created during the created during the complete retooling of Pokemon Gold and Silver in order to tie in with the movie. It was assigned a typing which (as we know from leaked playtest notes) was even internally was thought to be nonsensical, just to make it seem stronger. The plot of Gold and Silver was retooled to shove it in.
Lugia was created by company mandate, compromising the vision of the final game to sell another product. Lugia was the Pokemon that signified the end of Pokemon as a labor of love. It was the Pokemon that laid the foundation for so many things we have grown to hate about modern Pokemon.
