This episode adapts content roughly from manga volumes 9 and 10.
After the battle with the Phantom Lord guild concludes, Team Natsu returns to their daily lives. The episode follows these key developments: Fairy Tail Episode 31
Loke continues to avoid Lucy Heartfilia, seemingly because she is a Celestial Spirit Mage. He eventually breaks up with all his girlfriends, claiming he doesn't have much time left to live. This episode adapts content roughly from manga volumes
The "Southern Cross" spirit who provides the historical records for Lucy. Production & Adaptation Series: Fairy Tail (2009–2019) Fairy Tail Episode 31