In an alternate universe where Fletcher was hired to make a new show in the Avatar universe, this is the episode he made to pitch it to Nickelodeon. It is non-canon and was meant to give writers a chance to understand the characters as well as show off the animation style.
In the real world, it gave the players and the DM a chance to roleplay and test out the homebrewed mechanics.
Learn more about the characters and the players at https://sites.google.com/view/tlctrg