Leopard/Duftmon truly must be celebrating this moment, as Threst who he didn't have too much hope truly became the Knight that he was learning to become. Also Luna, she probably passed out in this moment looking at the dragon becoming a Knight in a moment of maturation.
This fits so well, Threst can't be angry when he gave his all, and his brother truly put all the bets off. Verge never underestimated him for a single second or held back, he knew and fucking understood that Threst had a last bet and trump card and keep Avalon for it. When Threst understood the honor, and accepted defeat with dignity he evolved because he finally figured it all out.
What Fonte, what Verge, what Leopardmon and so many other mons have said and done... it clicked with not only acceptance but honoring this fight as the best one that he had.