Not sure this is mentioned in-game anywhere, but the "Arcade Mode" (select a fighter, go through X number of opponents, fight Boss at the end, get a character-specific ending) is in the Multiverse menu. It's the lower right planet, the one whose flavor text mentions it's in a stable time loop.
I always love the character-specific endings, they put WAY more creativity into them than they need to and I was disappointed when I thought there'd be no Arcade mode.
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