Basically the event starts when Dylas starts checking out Frey's hands (for that really obvious reason) and starts hanging out at the blacksmith's all day and gets flustered and tells Frey to go away when she tries to talk to him.
This goes on for a few days until Frey's had it, and asks him right-out what he's doing and why won't he talk to her, and he still won't give a reason (even though it's really obvious what he's doing
) and tells her to leave him alone. Frey says it's like she's a stranger to him again and runs off crying.
Frey then goes around asking people for advice (talk to every villager), it's funny because some of the older characters seem to know what's going on and then others like Forte and Margaret are like "HE MADE YOU CRY, HIS « Mr.Gourmet's hat » IS TOAST
" lol
Later Dylas comes to Frey and says he needs to show her something, and that she probably won't want to see his face after their argument, but he'll wait as long as it takes for her to be willing to talk to him again. (and yeah, he will actually wait in the castle square every day like Hachiko if Frey ignores him).
When Frey goes to meet with Dylas, she asks about what he wanted to show her and he says she'll need to close her eyes first because it's a surprise. He leads her through town (but not off the airship balcony!!!) until they arrive at the restaurant and he says Frey can open her eyes. He reveals a huge feast laid out on the table [anime cutscene] that he prepared for them both and explains that it's the results of all the culinary training he had done since he began working at Porco's
During the meal Frey notices that Dylas got a cut on his mouth and he says that after everyone found out about their argument, everyone in town chased him down in a mob, though his injury was actually because he tripped and fell.
He remarks about how he's glad that everyone in Selfia cares so much and accepted him despite all his shortcomings.
After the lunch he divulges that what he had
really wanted to show her, and the actual reason why he was ignoring her is because he had been making an engagement ring, and even if it didn't look good on the outside, his feelings are true. He'd been trying to make it perfect, but when he upset her he thought he blew it and that maybe it would be better if Frey left him. But reflecting on how much he's grown since Frey first saved him, and that she's been there for him the entire time, making up for all his faults, he would never want to be a stranger again and asks her to marry him. (of course I went with the "yes" option >__>)
Suddenly Illuminator pops out from behind an indoor plant with her "This is an incident!" catchphrase, Porco crawls out from behind the counter and the other villagers appear to have been peeking in from the windows eagerly watching how things were going between the two. They poke fun at Dylas for being able to say such embarrassing/romantic lines with a straight face, and how excited they are that Frey and Dylas are finally getting married.
Dylas freaks out from all the sudden commotion (and realizing that they had been spied on the entire time), grabs Frey and runs off to the lakeside to continue their talk. Obviously a little more relieved now that Frey accepted his proposal he admits to being really afraid of something happening to her because of all the dangerous stuff she does, and that he wouldn't be able to forgive himself if he couldn't be there to protect her, but Frey reassures him a bit and he says now he can always be by her side whenever she needs him.
He begins to talk about the events that led up to him becoming a Guardian, that when he was younger (ie. loooong time ago, some hundreds of years it seems) and it was discovered he had the affinity for Runes, the kingdom ordered him to be locked up, so that when the time came for Selza to need another Guardian he wouldn't be able to run away. Aside from being brought food/water he was kept in solitary confinement, though Selza began to visit him and would take him on outings, which is when he learned how to fish and she became his best (and only) friend. As time passed, the kingdom took some pity on his inhumane treatment and didn't lock him away anymore, and some of the villagers of Selfia (from that era) told him that he should run away and live freely, but when the time came for him to become a Guardian, he had already long made up his mind to sacrifice himself for Selza.
Back then, he hadn't thought much of it, and didn't trust other people, but after coming to love all the people in present-day Selfia he realized that if he had chosen differently he probably could have lived happily in a very different life, but even having realized this, he doesn't regret any of the choices he made because of how happy he is now.
He maintained a positive attitude even after the 2nd plot too.
