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Iyoku’s answer is that the new movie is still set before the 28th TB, although he’s cagey on where exactly the Granolah arc fits into things. Still, the Moro arc is soon after the events of DBS: Broly, since Goku mentions them as having happened recently.
In this way, Buu ensures he takes out all the tough competition, then throws the final match against Satan. By the time Goku meets Uub at the tournament, Buu has come in as runner-up a few times, while Satan has maintained his win streak and finally become “super champion”.
While Merus and friends party, Beerus and Shin atone for the whole fiasco by babysitting the Zeno twins. And that’s the end of that chapter.
Buu loses his memories of being Dai-Kaioshin and reverts to his old self. The gang head over to Mister Satan’s place to celebrate their victory with (what else?) a big dinner party. And so, U7 returns to normal…save for one angel…
Umm…see, there’s Spirit Control and gigantification and uh…that is to say…ugh…well anyway, he wins! That’s the main point.
Goku races to break Moro’s crystal to save Earth and the entire Milky Way, but he runs out of energy. Just then though, he gets a generous donation of god power from an unexpected (?) source, allowing him to…well…
With Goku’s new-and-improved UI, beating Moro is a piece of cake. Even when Moro copies Merus’ UI skills, his body quickly breaks down under the strain. His last ditch ploy: merge with the Earth and enter big fat bomb mode (yes, exactly like Cell).
In short, Vegeta screws up and loses (although it’s mainly 7-3’s fault). The situation is so dire that Merus joins the fight, but in doing so he violates his angel vows and ceases to exist. Merus’ sacrifice provides the spark that finally kicks Goku’s UI into high gear.
Fortunately, Goku arrives in time to take on the increasingly power-bloated Saganbo, who eventually eats more of Moro’s energy than he can stomach. Next Goku faces Moro himself. He screws up and loses. Vegeta takes his place, finally putting his Yardrat training to the test.
Whis suddenly stops them! Shockingly, it turns out Merus is actually an in-training angel who went undercover at the Galactic Patrol to further his education (and his haircut’s beautiful too). Whis takes him away before he can violate the First Law of Angelics.