This Laguna Dream Sequence kicks off after Squall goes to visit Rinoa in the Infirmary of Balamb Garden. What’s interesting about this one specifically is that Ward will not be an active part of this sequence if you read the issue of Timber Maniacs in Shumi Village (which you likely did read if you completed the Shumi Village side quest).
There’s a bit of dialogue as Laguna laments having to start in a film in order to make ends meet. The story will continue until a small “mini-game” (that term is used very loosely here) begins with Laguna fighting a large Ruby Dragon. Laguna will have two moves:
Don’t spend too much time defending. Slash away as quickly as you can! The only time you should let up on your attack is if hit the dragon and it recovers very quickly. In that case it is likely to strike very quickly, so you can preempt this by defending quickly as well.
Laguna will run away after getting in the final attack against the Ruby Dragon, but it’ll ambush him again at the bottom of the canyon before Kiros appears to back him up. You will have two options available, “(Here we go!!!)” and “(H-Hold on a sec…)”. Select the second option so you can make some preparations.
Even though you may have selected a character that already had Junctions to stand in for Kiros, there’s a good chance that he doesn’t have any Guardian Forces or magic equipped, so do a full review of his junctions. Here are some things you should setup:
Once you start the battle, use the LV Up command to level the dragon up past level 45 and you will be able to Draw both Flare and Meteor magic from it - both of which are very powerful magics to junction. You can use Sleep magic to make extracting Flare and Meteor even easier.
Finish off the Ruby Dragon with regular attacks (or Alexander’s Holy-based attack) to end this Laguna Dream Sequence and arrive back in Balamb Garden in control of Squall.
The next stop is Edea’s House and the quest to track down Ellone.