This was a big waste of time. Footage is sped up by ~3x in case anyone actually wants to sit through it, but original footage was about 54 minutes long.
Turns out Despotic Arsene is really weak and you don't even need to play the game to beat him. This can technically be done with solo characters--specifically Shulk (using Activate Monado + aura heal) and Melia (with Summon Aqua and/or Earth)--but that just increases the dependence on getting good Unbeatable RNG rather than increasing the difficulty or changing the approach. If someone else wants to throw time at that, they're more than welcome, but it probably won't be me doing it.
I would have run away from the fight, but Imperial Sobat inflicts Knockback which would cause my characters to draw their weapons and Melia would start attacking. Decided just sitting in combat with Melia on "Come to Me" was the best way to deal with this.
0:00 - Battle Setup
0:29 - Battle Start
0:49 - AFK Start
15:59 - Arsene Defeated
16:34 - Build
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