Kahn finally used the Spirit Replica by infusing many skills, abilities and bloodlines in it after he was finally forced to go all out against Kagutsuchi, the Fire Deity.
One of the 5 doppelgangers of Kahn who were tasked to train in combat skills and techniques while he was increasing his skills in Blacksmithing Craft was in charge of perfecting Spirit Replica.
This new battle form of his didn't just come out of nowhere or was perfected on the spot as the doppelganger who was also Kahn, had experimented with various bloodlines and effects and formed a perfect synergy in this battle mode after many months from going through arduous trial and error.
And finally, Kahn decided to use it against Axel and his summoned Deity to shift the battle in their favor from the get-go.