Pikachu is a very likely candidate. It's Ash's most iconic Pokemon and has a deep bond with him. Whenever Ash is in trouble, Pikachu often steps up to protect him.
Ash could be a Pokémon trainer with a different starting point in this fanfiction. Born in 1987, by 1997 he might have already made a name for himself in local Pokémon battles. He could have a team of Pokémon that he rescued from difficult situations, like a Charmander that was abandoned by its trainer. His story could revolve around giving these Pokémon a second chance and proving that Pokémon don't need to be 'perfect' to be strong.
The impact of Ash's loss in the fanfiction could extend beyond just himself. His Pokémon might also feel demoralized. However, this could also be an opportunity for them to grow stronger together. Ash could start training more intensively, seek new training methods, or even try to catch new Pokémon to strengthen his team.
In a fanfiction about Ash born in 1987 and his situation in 1997, we could see an alternate story where Ash is not the typical rookie trainer. Since he's a bit older than in the original, he might be more knowledgeable about Pokémon lore. He could be on a quest to uncover some ancient Pokémon secrets in 1997. He might travel to different regions, not just for battles but also to study old Pokémon texts and artifacts, and along the way, form an unusual team of Pokémon that are attracted to his in - depth knowledge.
There are also fanfictions where Ash catches Rayquaza. This could be set during a time when the sky is in chaos due to some dark energy. Rayquaza is drawn to Ash because of his pure heart and determination. Ash, with his usual courage, teams up with his pokemon to assist Rayquaza in restoring balance. As a result, Rayquaza allows Ash to catch it.
If we consider the common growth pattern in the Pokemon series, Charmander evolving into Charmeleon could be an early evolution in the fanfiction. Since Charmander has a clear evolution line and Ash has a strong bond with it, it would make sense for it to be one of the first to evolve, perhaps due to a tough battle or a special encounter that accelerates its growth.
Ash's loss could lead to a change in his journey. Instead of just aiming for Pokémon battles and championships, he might focus more on self - improvement and understanding his Pokémon better. He could travel to new regions to learn different training techniques or seek out wise Pokémon trainers who can give him advice on how to avoid such losses in the future.
Maybe it's a legendary Pokemon in disguise. In some fanfictions, legendary Pokemon often play important roles. It could give Ash the egg as a test or because it senses that Ash has a pure heart. Another possibility is that it could be a young trainer who can't take care of the egg anymore and trusts Ash to do a good job.
In this kind of fanfiction, Ash might find it really hard at first. He's used to being a human trainer, and suddenly becoming a Pikachu would be a shock. He'd have to learn how to control Pikachu's electric powers which he only used to command before.
A characteristic is the expansion of the Pokemon world around Ash. Fanfiction might introduce new regions, new Pokemon species that Ash encounters. Also, many of them play with different timelines. For instance, Ash might go back in time to correct a mistake or move forward in time to see the future of the Pokemon world. Moreover, they can show Ash's emotional side more vividly, like his struggles when he loses a battle and how he overcomes it.