Whew. Thankfully I was wrong about the confrontation. To me though, there's no doubt that statue deity/demon is the King of Hell. Or what's left of him after his defeat. I still think the burnt martial artist is scummy for what he/she did but I guess Master doesn't seem to mind which is surprising.
Still, Master only has 10 years to train the brother and sister now (provided they both safely reunite with their Master) so that's kind of sad. The poor brother has had to sacrifice a lot in this arc.