Thing is, if the arbiter of the flame is back, doesn't that interfere with FATE's usage of the frozen flame again?
What I speculate is that locking FATE out of that essentially leads to some interference happening outside of El Nido Archipelago.
FATE's task was to ensure that nothing in the timeline was altered, yet now it can't access its main source of agency in reality, the flame, anymore.
This means that Crono could save everyone because FATE was in the background manipulating events more than anything, which really does make sense since some regular guy being that awesome sounds pretty stretched.
Serge, the arbiter of the flame, locks FATE out of using the device that allows for this kind of causality protection, therefore Crono fails to save the world from Lavos.
My question is why the concept of an arbiter of the flame even exists.
That suggests that Belthasar had all of this in mind when he created Chronopolis even, after he landed in a safe future as a result of Crono's actions. Then this stabilizes itself as he would have done all of this shit to ensure that Crono's actions would have come to pass, via them having always been protected.