The Unfortunate Demise of the Battle Suit: A Bitter Victory
While the copy had been 'fighting' against the fog and Nearsch's soul, Reign was still fighting against the suit that was now fully operated by the AI, which meant that nothing much had changed as the AI had been fighting over 90% of the time previously.
The AI had impeccable timing, and its ability to respond to Reign's attacks was incredible, allowing it to notice an attack right as it started and perform the necessary countermeasures for it.
Even with his transformation, even with his boosted powers, Reign was still unable to gain an edge over it, which was to be expected as the suit was the equivalent of a Tier V being. If Reign was a Tier V combatant as well, then with his transformation, he would be able to defeat the suit, but even then, he wouldn't be able to do it without suffering some injuries, which would mostly be light injuries that did little to hinder him.