The soldier hiding there waiting for his boss to wake up, then I walked up to talk to the normal guy that takes care of the chocobo, and encountered a boss fight with EX-ATM, at which point, Barret shouts out (its still not dead) - Barret isnt in my party - Jessie is frozen in place behind my middle character, and EX-ATM dies in one hit. I then find myself back in the room, where I can repeat the whole sequence.