What to select
After Chapter 1, return to the HQ Basement when directed. In the tutorial battle, select Ice Dagger from Special. Its use ends the lesson. The encounter restricts the available sword action, so a different offensive build does not solve it.
Next chapter handoffs
Shedletsky later gives the Train Ticket for Chapter 3 and directs you toward the Bizville Docks for Chapter 4. Talk to him when a new transport route has not opened. These dialogue steps are progression requirements, not repeat boss clears.