It is somewhat awkward placement. They should have done this at the beginning of the fight or at least before he activated his grimoire which should have been the climax of the fight.
They clearly wanted that to be in episode 1 rather than 2 though.
They also tended to jump from joke to joke very quickly, so if one didn't work it was on to the next. Well, outside of Dandy, Meow, and QT that is lol.
Yeah, I mean they could have had this be the first episode and do it chronologically or after the fight rather than teasing the fight then getting back to it soon. But it's not like this is filler since we haven't seen them as kids yet.