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I had sincerely forgotten that this issue existed, which is why I promised last Sunday that I'd be talking about what turns out to be 107. This... is not one of the stronger ones. It was also cut out of the Classic reprints, which just skipped it. Fairly reasonably, I think.
As I recall, this issue exists because Dave Cockrum was running behind on deadlines. So, this issue takes a break from the main story and is drawn by someone else (William Robert Brown), aside from a framing narrative drawn by Cockrum.
That framing device: Firelord is very, very angry that Phoenix disappeared in the middle of their fight. (Dude, she's just not invested in this nemesis relationship like you apparently are!) Xavier repeats his explanation that Phoenix is off saving the universe with the X-Men. Then he collapses, overcome by the nightmares he's been having. (At this point he also hallucinates that Misty Knight--concerned for him, and mostly expressing that by pointing a gun at Firelord--is Moira.)
With that, the scene (and the art) shifts. Now the new X-Men are practicing in the Danger Room, and quarreling too. Wolverine is angry with Cyclops for talking too much about how the old X-Men did things; Banshee backs him up on that, although in a much more easygoing manner.

... and then Angel shows up, and says that that's the right idea: in fact, all the new X-Men should quit!
The rest of the old team (sans Cyclops) show up, all of them wearing their original outfits, and all unaccountably mean. It's rather like the X-Sentinels, right down to "Jean" denying her friendship with Storm. There's a fight, which I am going to skim over because it's frankly not that interesting. Cyclops eventually figures out that the "old X-Men" can't be real (because Angel apparently overcame Banshee's powers with earplugs, which simply wouldn't be enough to deal with the vibrations). He thinks they might be illusions. And then...

Xavier concentrates, and the old X-Men simply poof out of existence. As he explains that he can do this because he created them, someone starts laughing behind him:

There follows another fight scene, in which Evil Xavier telepathically tricks the X-Men into thinking, for example, that the floor of the Danger Room is in fact a deep pit. Regular Xavier eventually ends this by creating new illusions of the original X-Men and having them vanquish Evil Xavier.
Xavier then monologues that this was his evil self, the part of his personality he keeps in check, and that it was the source of his nightmares, not Lilandra. Then he wakes up, by the star-gate, and alone. The new X-Men must have been just as imaginary as the old ones, but there's no moment when either they or Xavier realize that. It's an odd story, and honestly, I'm not surprised I forgot all about it.
... I also forgot about the Classic reprint when I posted last time. Not really my best day, I guess!
Classic added four prologues, which I have to call a little silly. (I kept thinking I'd counted them all and then realizing there was another!)
The first two share a single page: one has the X-Men rushing home by plane, Wolverine still complaining that Cyclops's cowardice has allowed a deadly villain to escape. (Which is an interesting way of reframing his irritation, from wounded pride to something more practical, in light of how his character had developed in the years between the original and the revision.) The second is about Lilandra, almost at Earth, just barely ahead of a foe that she cannot best because he's an old student of hers and she taught him too well. (I do like that--stressing that Lilandra has been a mentor is a nice bit of parallelism with Xavier.)
The third is a nice scene between Jean and the Professor, on their way to the friendly gathering that Firelord is going to interrupt. He has another of his "seizures"--caused by psychic contact with Lilandra (or maybe his evil self stirring, no let's go with the first one), and she offers to put off the party so that she can help him with this instead. Xavier, of course, insists that he's just fine--although not sure about Jean's stairs. That, of course, is a problem she can easily handle with her telekinesis, which is presumably why he brought it up.
Prologue #4 is two panels of Erik the Red gloating rather desperately; he's sure he's going to get Xavier (and thus Lilandra) this time, but he's also running out of options...
After that, the original X-Men-vs-Firelord fight is a bit expanded, as is the flashback of Erik the Red tricking Firelord into helping him. And there are a few little dialogue tweaks after that, but for the most part, the changes are packed into the beginning of this issue.
The Jean & Charles scene and the bit with Lilandra thinking about her ex-pupil are definitely my favorites.