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Morpho Knight gains traits of entities it absorbs, like the Forgo ghosts. I believe the trait Morpho got from GK is the ability to turn into Morpho Knight EX as it appears after GK's power fully becomes its own. Its markings are magenta like GK and eyes red like GK's prior to SA.
His "blood" made portals when enough of it pooled on the floor and touching it would hurt you. Portals looked like the ones used to summon GK in SA and SKC. Taking too long to defeat him caused all the portals/blood to merge and the whole arena would get swallowed.
10/10 dream.