There are two noteworthy problems with this story.
The first is that while you appropriately and clearly handled transitions between the real and virtual worlds, while telling the story within those two separate realms you have clumped all narration, descriptions, and dialogue into messy bricks. You segregate lines of dialogue between different characters, but because you did not use line breaks it all looks like a huge mess on the surface - and on top of that, you appended lines of dialogue to lengthy descriptive or expository segments. While there is nothing strictly wrong with that, it's not very organized and the arrangement comes across as awkward. In the future, I would recommend giving each line of dialogue its own paragraph and line breaks. Experiment with the layout and formatting a bit to try and find something that works for you and that is arranged more neatly. If you need an alternate way to perform scene transitions, use alternative formatting options - like so.
The second problem is the story's relative lack of rigor. The plot is straightforward enough, I had no problem understanding it, but there are a number of extremely large plot holes and unanswered questions. Combined with the
informality most of the characters behave with and the less than spectacular show of wit, the story as a whole lacks a firm foundation for me as a reader to stand upon. I cannot really take any of the story seriously, which detracts from nearly all of the entry's positive aspects.
You clearly have a knack for engaging and showy action scenes. In the future, slow down a little and allow room for some more cerebral storytelling. The whole story does not have to be a thesis in logical rigor, but it should at least be sensible enough that the reader can take every aspect of the story seriously - which would enable for a greater degree of engagement. Your previous story, by way of example, was a lot more engaging than this one because you took the time and effort to build internally consistent reasoning into what the characters were doing.
On a more minor note, I will also say that while your action scenes are fairly interesting in terms of what the characters are
doing, they lack descriptive flair. Let me pull up two different parts of the fight scene to illustrate that point.
Riposte, thrust, counter-slash, dodge, parry, phase-slash, switch-to-backhand and slash, sweeping kick, stab, dodge...
Cruallassar and Delnier kept going at it, their blades leaving afterimages in the air...some physical illusions, some magical ones that might hurt...and destructive energy being aimed with pinpoint precision and missing by scant micrometers...or not missing at all, and just phasing through the other as they transferred their essence around the attack. Delnier had revealed his knife collection, which Cruallassar had expected, and had returned with his own knives. Shadows swirled around the room and obscured normal vision, and Cruallassar's eyes glowed red as he used his ethereal sight to see not only his enemy through the fog, but to see behind and to the sides of himself as well, something a monitor just couldn't reproduce. Suddenly, they broke apart with a flash of energy and stood facing each other again. Neither were scratched, and Delnier spoke again.
The top of the keep was pretty well destroyed by now. A sextet of missiles launched from Cruallassar's wrists and raced down at Delnier, but a few purple flashes and they all blew up mid-flight. Lances of light shot from Delnier's sword up at Cruallassar as he hovered in midair, but were intercepted by a shield projected from Cruallassar's arm, just before he drew an assault rifle and started peppering the area with plasma bullets. Delnier's sword blocked most of those, moving with in-human speed even from the point of view of Cruallassar's heightened senses. Something seemed off...
In the first section, you do a fair job of describing the visual elements of what is happening - the presence of the afterimages, the dark fog obscuring the area, Cruallassar's glowing eyes, etcetera. In the second section there are fewer details - we do not know
in what fashion the keep was destroyed (presumably there was still something for them to stand on, but I have to guess there). We do not know how big or fast these missiles are, or what kind of emissions or payloads they have. I have no idea what the shield is - it could be either an energy barrier or a physical, collapsible shield. The assault rifle could stand to be described, and I honestly have no idea how Delnier could have
blocked plasma simply because I am provided with no description to try and visualize the exchange.
I would advise you to take every excuse you can to insert additional descriptive details into fights like this one. The way you have it now, both combatants are throwing dozens of different attacks and techniques at each other, but they mean less than nothing to me as a reader because I have no idea what sort of weight or consequence they are even supposed to have. Slow down - a little. Take your time to describe not only what each character is doing, but the visual effects of their actions and the impact on the atmosphere, terrain, and opponent. While this will inevitably result in less furiously paced fight scenes (although there are ways around that), it makes every action taken by both combatants seem more meaningful and interesting - and thereby more engaging. Quality over quantity in descriptive narration, in other words.