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So did you guys talk about this
Sephiroth seems to be the weirdest character added in FP2, in terms of timing. There's stuff to suggest that he was supposed to be CP6, but this seems to indicate that he could have been even later than Pyra/Mythra
I remember that Sakurai stated that the Pandemic actually messed up Discussions with a 3rd party company, where Sakurai and the team were supposed to present something. It's possible that this could have been Square at the end of the day
In terms of development order, it seems to be
Min Min - Steve - Kazuya - Pyra/Mythra - Sephiroth
If I had to take a guess on what might be happening, It seems the Dev team might have started on the more Complex characters to get them out of the way, as I would say Pyra/Mythra and Sephiroth are the least alien characters when it comes to how they operate in Smash
If the stuff pointing towards Sephiroth being CP6 were true, I want to say that Covid messed up planning with Square, which means Sephiroth had to be delayed internally. The pandemic might also be a big reason they made sure to start development on the complex characters, just to make sure everything is on schedule
Keep in mind that starting work on a character internally doesn't mean they will release before a character started later. since Sephiroth is the most simple character implemented from FP2, it was probably faster to finish and Develop him, even if work on Pyra/Mythra was started first. this would especially be true if the team had to Prioritize Sephiroth if they wanted him specifically to be at Game Awards
This doesn't say much about CP11 since it's unknown where they would fit on this timeline.