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Tip by ejo

CONTAINS SPOILERS

Fight Scaly Pete to evolve and progress level

As you're leveling up, you may notice that there's text by your level progress meter that says "Fight Scaly Pete." In order to move on to the next evolution, you have to fight him. Do so by completing story missions. Scaly Pete will eventually show up in Sapphire Bay and an objective called "Pete: The Revenge" will be activated and a boss battle will be triggered.