This chapter is establishing a few rules/ what I think happened in the universes of Ninjago and Nexo Knights.
First, I think that Lloyd was wearing contacts for the first 7 seasons of Ninjago. This is because he didn't see why he had to show his true self but when season 8 came round and Wu
disappeared, he had to step up properly and take responsibility and show the team his true self. (Don't ask me why my head came up with that,it is random but Lloyd's backstory in the merge slightly backs this up)
Second, after season 4 of Nexo Knights, I think Merlock 2.0 got a small body (about the same size as everyone else) and trained Clay in how to use his magic. They all went back to their jobs that they had in-between season 2 and 3 but only part time so they could all still train (Lance was very upset about that). Macy is slowly starting to become a princess (and I mean very slow). Ava and Robin became the main people to look after the Fortrex along with Merlock 2.0.
Third, I think Lloyd and Hurimu are just friends, Jay and Nya are married , Zane and Pixel are boyfriend and girlfriend as well as Kai and Skylor and Cole and Vania.
This is what I think and is cannon in this story. It many not be cannon in the series but this is what's happening in this story.
Now let's see what happens