Funny enough, the answer to this question is as easy as looking on Playmore's site. They actually had the Team Stories written up concerning the 2003 tournament. (This time, in English too(Did they take them down?)) Andy did not show up in 2003 because he decided to stay back home and take care of his student Hokutomaru, who was quite sick, at the time.
Just like Kensou and Bao aren't there because they went into hiding. They are also in training. Apparently, Kensou's little small awakening to the Dragon spirit, in 2001, has some significance to the catalyst that's behind the events of the new story arc. That topic will most likely come up again. Chin believes Bao, and more specifically Kensou, are being hunted for Kensou's secret. How Bao is related to Kensou's awakening, that's yet to be revealed. Supposedly, Kensou had it in him, from the get go. (Which might be the KOF storywriters trying to work in something about Kensou, vaguely related to a transformation Kensou had in Psycho Soldiers)
I'm curious as to what level of power, and what kind, they decide to use for the Dragon Spirit. Psycho Soldiers worked on a higher power level, so giving him that much power would make him cheezy enough to be a boss(maybe worse. The Dragon spirit was practically invincible, I believe).
