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fun fact! if you wait to do any sidequest with red until after this happens, he uses his nanaki voice in those sidequests. They recorded a second set of lines for all those quests specifically to reflect that change.

That's cool and reminiscent of Red dead redemption if you leave all (except one specific) stranger side quests to Jack Marston.

Incidentally, this was also true in the original game. A few optional scenes that could be done both before and after Cosmo Canyon would have different dialogue for Red depending on when you did them.

The easiest way to explain is that his "Red" voice is when he's trying to be serious, and the "Nanaki" voice is when he's being himself. It was a bit more obvious in the original japanese version, where he spoke more like an old man as "Red" and more like a young adult as "Nanaki"

That makes sense! I guess I was confused from a narrative perspective because the voice change specifically felt like a very on-the-nose way to show the two sides of his personality, but I know others appreciate that narrative decision a bit more than I do.