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Xenoblade Chronicles 2 version 1.3.1 update due out later this month, will fix New Game Plus bugs
Xenoblade Chronicles 2’s next update will release later this month, Nintendo has confirmed. The version 1.3.1 patch is intended to address bugs. With one of these issues, some common Blades may disappear when playing New Game Plus. The upcoming update will address that bug and more. We’ll let you know when the update officially goes live. Source
Brian