1 official ruling from Bandai, last ruled Mar 28, 2024. Straight answers to how this card actually resolves.

If I have a Digimon card with the [Royal Knight] in my hand, do I have to place it under my [Yggdrasill_7D6] in the breeding area as its bottom digivolution card for this card's <On Deletion> effect?
No. The cards in your hand count as private information, so you don't have to place that card.
Ruled Mar 28, 2024
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