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This is also something that's been bugging me since it's been established that Odin basically exists strictly through his weapon and does not have worshippers like other primals.
Hopefully there will actually be an answer in 6.0 somewhere since we still don't know where Zantetsuken disappeared off to.
You can summon pretty much anything that you want as long as you have enough prayer and/or aether. Lunar Odin is not the same Odin that is created from someone using Zantetsuken, it's just a manifestation that looks and acts similarly. It was likely just summoned from random people who were abducted in the Gridania area after they were tempered.
It's very much implied that the Lunar Primals aren't really "Primals" as we know them. They don't seem to have a "will" of their own, and just follow Fandaniel's commands. They don't Temper, either, and Bahamut could Temper FROM DALAMUD.
My guess is they're closer to very complex aetherial constructs drawn forth from the memories of the kidnapping victims. As GoldStarz said, gather some random people from the Shroud, plant some subconscious thoughts of Odin while they're locked in the tower = Lunar Odin.
Maybe I'm completely wrong, but there's something very "wrong" about them.
I imagine since the dude knew he needed Meracydian Dragons for Bahamut, that he knew who he needed for another Odin. Remember that Odin is not unique to the Shroud. There is also Raiden in Eureka, which is exactly the same type of primal, just with a different blade.
Wouldn't put it past Fandango to make a similar blade, and then wrangle a dark rider for it. Guy's already going all Merlock on Garlemald. Surely he can make a little knife what turns ya into a primal.
Of course, the meta answer is because the Lunar Primals are optional super bosses in FFIV After Years, and are literally just palette swapped versions of the previous Eidolon fights.
You mean after the trial at Urth's Fount? I didn't at all take that as the sword being unaccounted for - rather it resumes what it continues to do to this day: appear intermittently in the Shroud, drawing a crowd of glory-seeking adventurers, one of whom may succeed in slaying the wielder and taking the sword as a trophy. And so Odin will appear again wearing a new face.
Maybe there's a tower in some unseen portion of the Shroud that just has Zantetsuken pinning a guy to a wall. Whenever the sword tries to turn him into Odin, the tower seizes control over the aether. Then it spits out a Lunar Odin whenever the previous one dies. That sounds pretty ridiculous to me, but I can't imagine anyone actually worshipping Odin in the first place.
Or, assuming the Save the Queen lore supplanted the old Zantetsuken/Odin/Raiden lore, maybe there actually people out there in the Shroud that were tempered by Zantetsuken/Odin, but not killed. And maybe Fancy Dan went about kidnapping them for his tower.
Or maybe he's just there for fanservice and you're not meant to think about it. But that's not a very satisfying answer, if recent crossover content is any indication. Besides, Lunar Ravana isn't a callback to an FFIV Advance boss, so... I dunno. They could've just given us Garuda, Titan, Lakshmi, or Susano.
These lunar primal stuff should be limited-time FATEs that can spawn anywhere between now and 6.0. The NPCs are talking about how they're going to take care of them if they re-appear. Rather than have them do that off screen, make them FATEs that people can join.