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So, he's base form.
But...can you notice how glowy Shiinotic is?
Here comes my little theory...
In gen 7, morelull was found in the alola region in deep forests. But morelulls looked out of place. There was no magic in the air, no glow, no mushrooms.
Morelull is actually an ALIEN species to the Alola region (that's also why they are rare), as they are native to the Glimwood Tangle in Galar.
Here, surrounded by magic and mystery, they can unlock their true potential, and evolve further.
This also plays in the whole "regional" stuff, as Morelull would, along with Zigzagoon, be a pokemon that was NOT native to the region they were introduced in
