The story obviously doesn't make any sense...
It's KI guys, what did you expect ?
I know a lot of you read the comic book back in the days, but its typical 90's B-movie story, plus, the arcade and console versions didn't have much of a "cannon" story.
The only thing they did was swapping some characters for others between KI1 and KI2.
They all have a biography and a goal to achieve, but there is nothing more.
So yeah, good old Combo back with his two eyes.
No hidden story element here, it's a fighting game, they just brought back the character has they wanted him to be.