All of the Brave and the Bold stories are in-universe TV show versions of real events. Sort of like "Real Stories of the Highway Patrol", but with more giant robots and badassery.

In the paticular case of New Tricks, the major events (Mio getting a new lease on life by being trained in K-ryuu, Sakura helping her forge a new blade and reforging Reppumaru, etx), all happened. But it's entirely possible that quite a bit of the timeline was compressed, or that some of these events happened a bit out of order, because it all has to be fit into a 60 minute (well, OK, 44 minutes with commercials) broadcasting block.