Although the Lizardman was arrogant, he had the capital to be so, having killed a powerful player transformed into an Angel with a single strike.
Then, he even rendered Edward helpless, and subsequently, with a bizarre secret technique, restrained a Mountain Giant whose physical strength was not inferior to his own. It could be said that his methods were varied and extremely formidable.
While Li Yao also appeared strong, it was on a technical skill level, which players believed, beyond a certain point, was not something mere skills could shake.
Not only them, but even Edward and the others felt this misconception after their transformation, thinking that they could abandon other techniques once transformed.
So they naturally didn't think that Li Yao could win against the opponent, feeling even more intensely the powerfulness of the extraterrestrial players.