Even though it's a "Dream Match," the game uses the character designs and teams established during the NESTS saga (KOF '99–2001).
It is a title, meaning the developers ignored the ongoing narrative continuity to bring back popular characters who had died or disappeared in previous chapters. This allowed for a massive roster focused entirely on competitive gameplay rather than plot progression. KOF 2002 ACA NEOGEO
While there isn't a story mode, the game features a few narrative-adjacent elements: Even though it's a "Dream Match," the game
Unlike many entries in the series, (and its ACA NEOGEO port) does not actually have a formal story. Even though it's a "Dream Match
The ending typically just shows the various teams celebrating or interacting in humorous, non-canonical ways after Rugal's defeat.