The Misfit of Demon King Academy Episode 8

The Final Duel (二人の決勝戦, Futari no Kesshōsen) is the 8th episode of Maō Gakuin no Futekigōsha anime series. 

Synopsis
“Right now, it’s just you and me”

The Final of the Dilhaide Demon Sword Tournament———— Both sides decided after being taken hostage by Sheila and forced into a situation where she couldn't make her full strength. Then, at the moment of settlement, a huge magic formation suddenly appeared on the stage. The scenery around them is distorted and they were thrown into a different dimension. The scene behind the incident finally reveals its appearance.

Characters
In order of appearance:

Summary
Before the duel commences, special rules are implemented which impact both Lay and Sheila. Lay praises Anos for his ability to fight despite his magic being drained. However, he decides to fight on his own terms which allows them to go all out. Ultimately, Anos is victorious. It is then revealed that Melheis was the mastermind behind the tournament. Anos is challenged by Melheis, Gaios, and Ydol. However, Lay takes out Gaios and Ydol. When confronted, Melheis reveals he has Sheila which causes Lay to leave the Dimensional Prison  to save her. A confident Melheis heads to an Absolute Space where he attacks Anos and Lay. Sheila becomes a sword that Lay uses to slash the Absolute Space.

Anos then confronts a stunned Melheis where he frees him from his brainwashing. Returning to the arena, Anos is declared the winner of the tournament. After healing Lay, Anos resurrects Sheila, revealing her true form was a sword. Afterward, Sasha gives Anos a sword as a commemorative gift.