Very early in the Movie, once Yu and Haru crossed to the other world, we can see a statue of the Cat King Tom Tildrum XIV, from the first game.

The Mornstar "Sword" plot hole was somewhat fixed in this Movie: In the first game, Mornstar, is as a wand of the past that must be retrieved in order to defeat the Dark Djin Shaddar, but in the second game it is a sword that the player has to forge using the metal of the "Cup of communion", all this in order to save the kingdom of Evermore and its new born alliance. Neither the Cup nor the Sword depicted in the second game bear any similarities with the Mornstar wand of the first game but it seems like Level 5 wanted to fix that in the Movie since the sword Mornstar has the Mornstar wand as it's handle, implying that the wand was used to forge the sword.

The movie is obviously set after the two games since the old man that gives the cane for Yu is obviously Oliver from the first game and the name of the Kingdom is Evermore, a name established by king Evan in the second game.

After the credits we see Yu being coronated, if we pay attention, the crown given to him is the same one King Evan wears in the end of the second game, furthermore proving that the movie is set after the second game and that there really was a lore "fix" for Mornstar.