>>33154557Lunardoge fits Ashs fighting style better and the fact that it's bipedal gives it more room for battle animations.
But given Rockruffs personality Sundoge fits the scenario better, as for a 3rd form it's possible but it really all depends on what it is.
The fact that Sundoge is Olivia's Ace and Lunardoge is Gladions Ace giving Ash a 3rd version of Lycanroc would be neat. But it wouldn't be the first time Ash acquired a Pokemon that his rivals have used at the same time. Staraptor, Torterra, and Gliscor for instance Paul had as well.