The disconnect for me is that earlier in the series it was established that the top six had not been replaced (killed) for over 200 years or the like, each having killed multiple hashiras (I believe the Daki duo mentioned a 20+ count combined). These are all serious threats that mercilessly punish mistakes. The gap was that all current hashiras had in common that hey had already at some point killed a lower six, but none (obviously) had killed an upper. That context added to the desperation of the battle from last season. Muichiro can be an omega genius swordsman and win- but the degree of the victory just feels out of step with anyone else by an order of magnitude.
The tone and tenseness of these fights betray that setup. These battles should feel much heavier, even if there are no disfigurements or deaths. I never felt like Muichiro was at risk of dying after he got out of the water prison because the Vase guy didn't appear formidable in a fight; it was all tricks. Lighthearted antics ("You're a coward hiding in a tree!"... "No you!") struggle to find a place here. In the previous arc, the lighter/humorous tone worked so much better because it was sprinkled on the 'discovery phase' of the encounter of the Red Light District instead of during the fight itself. The same is can be said for the previous arcs. Trash talking and posturing is fine, but when it starts to sound like school yard name calling... the tone is undercut.
Bongo demon #2 isn't shaping up to be much more interesting; these gimmicks aren't hitting like the author wanted.