There are separate categories of HP and defense for the capsule form of a monster, but they are always significantly worse than the summoned monster

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It has negative counter synergies and its an ETB effect, so you can play it in a deck like Yarok, the Desecrated
You can only use this effect of "Megalith Phaleg" once per turn
For example, you could equip Buzz Lightyear with a Jetpack to improve his abilities
Yeva, Natures Herald Yeva changes how you play mono-green entirely