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From SmashWiki, the Super Smash Bros. wiki
The Spirits Dismiss menu.

Dismiss is an option within the Collection tab of the Spirits mode, which allows players to dismiss spirits from their inventory. There will be a list of all the spirits that the players currently has and can be sorted into various categories, such as date obtained or the type of spirit. Once the player has selected all the spirits they want to dismiss and dismissed them, they will be given Spirit points and the cores left behind. These cores can be used to Summon or Level Up other spirits or sold for more Spirit points.