He's time released, you have to leave the machine on to actually unlock him alongside these weird character use things. I just used a cheat file in Mame that a friend sent me!
Or you can go to the test mode then to the Color bar screen menu and press HK, MK, HK, LK, MK, HK, LP and HK. You will then get a message saying “HERE COMES A NEW CHALLENGER.” Indicating that you now have not only Kairi unlocked but Shadow Geist and Garuda too!
