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I don't think I tried using a giant Pokémon and a regular Pokémon in the same dungeon before. Obviously the developers didn't expect a player to use giant Pokémon in a dungeon, so things like this can happen when you try to walk past them. Other times, they get warped elsewhere on the floor.
Giant Pokémon attacks work the way you would expect them to, attacking (and getting attacked by) the Pokémon in the 3 tiles in front of them.