For the faces that are obstructed, that's Mario, Samus, and Sheik making round 3.
Round 1 involved deciding whether or not I could wavedash and dash dance with each character at least semi-consistently. Only 3 were cut, because Bowser, Peach, and Yoshi all feel very awkward to me.
Round 2 involves sparring with my sparring partner and seeing who feels good at the first impression level vs. who doesn't. Ganon was too slow for my tastes. I don't even wanna touch Ness since I used him in P+ and I don't want to get toolkit confusion. Pichu has nair... and some grabs, but I want more. Kirby feels like a chore due to his lackluster toolkit. This applies to Zelda as well. Icies can be easy to pick up if you can wobble, but I can't so they're out.
A surprisingly high amount of characters have clinched a spot in round 3. DK felt surprisingly fun for me to use, and that's the same with Link and Samus, and I didn't expect to enjoy playing those either.