Zero patted his side to ensure that his dagger was still underneath his clothes. He had placed it there during his target practice, even though Xyler had told him that he wouldn't need it much. He chose to keep his Combat Archery System equipped over his Darkness one.
Xyler stood squared off with him as his arms were crossed across his body - to Zero it seemed like he was just opening himself up to an attack, but based on Kai's fight he knew better.
Kai meanwhile was situated over by Grimm off to the side. They had learned that Xyler did have some healing capabilities but he chose to let Kai sit with his injuries for now while he now dealt with Zero.