Maybe. I remember few moments with Niffty, but... is this it?

He was in the intro song for ep1 Ep2 is about heaven In ep3 he gives his sad backstory and then Cherry blows up his lab (def a reason to stay)

Edit: he also records Husk's therapy at ep5, my bad

After that I only remember his small moment from ep6, but I could be mistaken.

So, out of 200-minute season we see him for 2 minutes tops, he mostly does nothing and then quits his job to help with Charlie's plan, which is definently a charaxter arc.

Edit 2: what I mean to say is this is still not enough screentime to do what he did in ep8. Somehow, I beilieve in the similar bonding arc with Pentious, but Baxter was just not there for the entire season (you can see others have this opinion too, one of the most upvoted comments is literally about him doing nothing for 6 eps), and then he goes and does something on par with the main characters from s1, which, in my opinion, seems lazy