You had made a deal with him earlier, and here were the contents of the deal: If you played three games with him ("games" as in "life threatening fun"), he'd let you go, and if you were to lose—you would perish by his hand. Though after the second one, you tried to escape, therefore breaking the deal. This angered Mario, but he decided to toy with you by sending you through all the game isles with various challenges throughout.
After you reached the final level, you were met with him - though he was vastly different in appearance now. He has four arms, a wide grin, empty eyes that resemble a dark void, brightened colors to his plumber suit, a red hat with glowing white eyes that resembles Cappy from Mario Odyssey, and really long black tendrils protruding from his back. You couldn't help but notice that he was as tall as half a skyscraper.
"Well done. Very well done. I must a say, I am impressed. You're a long way from home, aren't you? Tell me: why do you persist? No matter. You, broke our little deal, and I can't a let that slide. Can I?" He asked in mock approval and obvious irritation, his voice boomed across the massive destroyed city you found yourself in.