The ending typically just shows the various teams celebrating or interacting in humorous, non-canonical ways after Rugal's defeat.
Even though it's a "Dream Match," the game uses the character designs and teams established during the NESTS saga (KOF '99–2001). KOF 2002 ACA NEOGEO
While there isn't a story mode, the game features a few narrative-adjacent elements: The ending typically just shows the various teams
The legendary villain Rugal Bernstein serves as the final boss and the host of the tournament, despite having been killed in earlier games. It is a title, meaning the developers ignored
It is a title, meaning the developers ignored the ongoing narrative continuity to bring back popular characters who had died or disappeared in previous chapters. This allowed for a massive roster focused entirely on competitive gameplay rather than plot progression.
Unlike many entries in the series, (and its ACA NEOGEO port) does not actually have a formal story.