Morph glitch?

The change takes place in C1, right before the imp check.

Code:

C1/2F99:    BDC02E      LDA $2EC0,X (Load status byte 4)
C1/2F9C:    2908        AND #$08    (is Morph set?)
C1/2F9E:    F015        BEQ $2FB5   (Branch if not)
C1/2FA0:    B96C7B      LDA $7B6C,Y (Load character battle graphic)
C1/2FA3:    C912        CMP #$12    (Is it already Esper Terra?)
C1/2FA5:    F03F        BEQ $2FE6   (Branch if it is)
C1/2FA7:    A912        LDA #$12    (else, load Esper Terra offset)
C1/2FA9:    996C7B      STA $7B6C,Y (store Esper Terra as new graphic)
C1/2FAC:    205731      JSR $3157   (find new sprite location)