This is Paralogue 19, and focuses on Lutz. It is unlocked by S ranking Harold/Arthur (from now on, just Harold). It is on the Nohr and Touma paths only.
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You can find data on the chapter itself here under “Paralogue 19” [P19] here.
Lutz is talking to his wyvern named Michal. He says despite waiting for his father for so long, he doesn’t think he’s coming. He mentions just how lonely he is. Michal chirps a little, as Lutz figures it is trying to comfort him. He thanks Michal, saying it is a wonderful wyvern, saying he will not cry. He decides to live as he pleases and ignore what his father said about staying in this place, as he rides off on Michal.
Later, Harold is shown looking for Lutz, calling out his name, wondering where he went. He notices something dropping from the sky, wondering if it is a wyvern’s droppings. It turns out to be Lutz, as Harold wonders where he suddenly came from, wondering why he left his secluded realm so quickly. He assumes Lutz just got lost, and tells him to have no fear as his father is here. Harold then says it has been a long time and Lutz has grown since they last met. Lutz does not reply, and Harold asks him why he’s so quiet, asking him if there are any worries he has he wants to talk about. Lutz then yells, telling Harold straight up he hates him for being a father that never visits, and the one time he does he is very late. Lutz then runs away crying, as Harold tries to follow, but then is interrupted by a mercenary, who questions why he is chasing after such a young boy. Harold tries to clarify that he’s the child’s father –but the mercenary says he has never seen Harold around here before. Harold introduces himself as the ally of justice, but this makes the mercenary ask him if he is Gazzuk, to which Harold says he’s wrong, then tries to introduce himself again, as the friend of everyone Harold. The man is unconvinced, saying there is no mistaking that face as it is that of the Thief Boss Gaazuk. Harold asserts he’s wrong, but then Lutz comes back and says not to make a mistake –and that the man is Gazzuk. Harold is shocked at his son’s betrayal, as the mercenary challenges Harold to a fight, saying they will capture him here today. Cyrus wonders what the heck they’re all doing, and realizes they have to prepare for battle now. The battle begins.
During the battle, the group uses Dragon Vein to clear the misunderstanding, revealing to the mercenaries they are not just some group of bandits after all. Meanwhile, Harold must fight an angry Lutz in battle to help calm him down. Lutz refuses to listen to reason no matter what Harold says, and so they battle.
After the battle, Harold apologizes to the defeated Lutz about making him feel lonely. He says from now on, they will be together. Lutz asks if that means Harold will be staying with him in the secluded realm now, but Harold says it’s the other way around, and that Lutz will be joining him in the army. Lutz asks him if he is serious, and Harold says it is his true feelings on the matter. Lutz breaks down and cries, which Harold takes as Lutz hating the thought. But Lutz says it is not tears of hate, but rather tears of joy. Lutz then admits he loves everything about his father, and so Harold coming to invite him to his army has made him incredibly happy. Michal makes a noise, as Harold asks why it looks so hostile, as it attacks Harold. Lutz quickly tries to tell it that his father did not make him cry this time [out of sorrow], and that his father is not bad! Michal continues to attack anyway, as Harold pleas Lutz to hurry up and explain the situation. Lutz reasserts what he said earlier, and mentions how they will all live in the world outside the secluded realm together now –Michal included. This calms it down, as Harold remarks that he thought he was done for. Lutz says he will now join his father as a fellow warrior of justice, as his father accepts, saying they shall now fight to bring peace to the world together.
On the side, Cyrus is pleased with the outcomes of the events, though it looked uncertain for a little while. Though, he seems to express some concerns with the flashiness of this new father and son pair…
Note on the name “Michal”
*The name seems to be a reference to Michalis from the earlier games, however the kana spelling is slightly different, so this was how to compensate for it. ミシェイル ＶＳ ミシェル means Mishelle VS Michel, and if Mishelle became Michalis then Michel may work as Michal. Hope this makes sense.