We've seen it before with Kotetsu and Izumo transforming at the Chuunin exams:
And with Orochimaru:
My theory is the pale kid is Oro using a transformation jutsu. He could be scoping out the village and its new ninja to get an idea of their strength. He could be planning something devious.
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And with Orochimaru:
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My theory is the pale kid is Oro using a transformation jutsu. He could be scoping out the village and its new ninja to get an idea of their strength. He could be planning something devious.