In-character. No prep. Intel is name and likeness. No outside interference. No BFR but a KO is sufficient for a win.

Cloud is current, so pretend Dirge of Cerberus just happened. For Lobo you may only reference Rebirth (which is relatively new so the possibilities are endless as of 2018.)

Cloud gets his modern blade.

Round 1. Cloud gets his bike, Fenrir. Cloud has Regen and Bolt materia. Lobo gets his bike and hook on a chain. Battle in Happy Harbor, Rhode Island (DC Earth), 30 yards apart visible. Remember no interference but there are innocent bystanders.

Round 2: Cloud only has his blade and possibly his Limit Breaks. Lobo has his hook on a chain. Neither get their bikes. Battle 30 feet apart visible in the Forgotten City.

Bonus round: Cloud is allowed feats from the Kingdom Hearts franchise. Lobo is allowed Post-Crisis feats but only those that have been referenced in Rebirth, assumed at Rebirth power levels.

Battle in the Hades Paradox Cup arena.

Round 1: Cloud's faster and possibly strong enough to hurt Rebirth Lobo, chances are Lobo hasn't got enough feats to really say otherwise....Stalemate or Lobo since I don't think Cloud is strong enough to KO Lobo with those stipulations.

Round 2: Cloud can KO Lobo with Limit breakers

Bonus Round: Lobo wins decisively, anything that relates him to his Post Crisis feats puts him way above KH Cloud, not to mention Rebirth levels aren't that bad tbh...