The Game Instructor does not appear in his true form in T.T.F.N. In Definitive Edition and later variations of the first T.T.F.N, it is possible to witness the Game Instructor being initially created by Lokigred, by activating all but one win condition and then interacting with the red treasure chest. When these conditions are met, it activates a cutscene, where Solvice (G.I.) notes that nothing could go wrong from opening a treasure chest. Solvice gets a Game Over, and, unlike any other Game Over, he ends up being conscious of it. While trapped, Lokigred, off-screen, approaches him. Solvice calls out for help, and the game ends.
At the end of T.T.F.N. 2 it is revealed to the player that the Game Instructor was in fact Solvice from the first game all along, trying to make a better name for himself by creating a new world in which he was the hero.
This backfires on him once Solvice (T.T.F.N. 2) realizes that he had been controlled the entire time. Solvice defeats G.I, and in doing so, Lokigred revokes his powers and leaves him in a version of the world that is designed to be a personal Hell for him.