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They can still do wild battles and outside exploration even if it's entirely contained within Lumiouse city. They'll probably have the city be attacked by wild pokemon due to plot reasons and having you save and redevelop the parts they destroyed just to justify having different types in such a small place. My only worry is how they'll do different environments since some pokemon only live on mountains or snowy hills or volcanos, but I'm guessing they'll pull a blueberry academy and have a terrarium somewhere.
