KOF 99 - 01 story

Can someone please explain this to me?

Who the fuck is a clone of who and what is the the phase 2 they keep talking about?

Since you can't go directly to the FAQ, just click the link, and then click on "Story Guide":

<a href="http://www.gamefaqs.com/coinop/arcade/game/3554.html" target="_blank">http://www.gamefaqs.com/coinop/arcade/game/3554.html</a>

Hope that helps!