It's the flashback of his first life. He was born as Ao Yue, Ao Gu's little bro, then he was kicked out of the palace and changed his name to Xuan Yue, met Xiao Jifeng, they fell inlove, Xiao Jifeng went crazy, they died, and were reborn. Ao Gu found his little bro's reincarnation AoAo and took him back home. Then AoAo met Ryan.
AoAo ran away several times in his current lifetime, by the way. The first time he met black ball (Ryan). This is actually the second time AoAo ran away in this current lifetime.
Oh and let me add one thing. He was taken away from the palace because of the demon spirit that they comcealed in him. He is in exile w/o him knowing that he is nor did he know he's a dragon.
DUDE TY I WAS SO CONFUSED
Is this his first life relapsing ? I’m confused asf