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I think it will heavily imply its dead though. Pokémon has been getting better with handling death over the years. The movie introduced the concept of it directly, but even before that in things like pokemon cards, in game conversations, anime episodes its been indirectly reffered to.
Pokemon die, but that's a part of life, and in litten's case it was important to its character development and still is.
Maybe seeing the spirit of its friend will motivate it into evolving into Incineroar, or gaining a new training focus.
It seemed a surrogant father/old master type relationship because Litten wanted to learn from it, but grew protective over it.
