Well, have a few more updates I guess (per the ROM Hacking.net thread and Discord):
These blocks can be broken by magic.
Only Cloud Mario can stand on these clouds, and touching certain types of water here removes said status.
Tiles for a candy themed area.
This snow level involves Ptooies.
Random ice fortress/tower screenshots.
And obviously the boss is Fryguy.
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As for Mario's Nightmare Quest? Well, it's currently on Fusion Gameworks, ROM Hacking.net or the GCN at the moment.