Nightmare is first encountered as the level boss of Mission 18.
Strategy
Vergil trivializes this with his destructive JJC and DG. This is the same with Dante on Cav.
This fight depends on how well you can hit Nightmare's head. If you fail to hit the weak point consistently then you may want to turn off DT at the third bar to min-max your Sword Formation DPS.
Shadow and Griffon will get into stalemate-state instantly thanks to DSD properties with Cav Air Combo B.
If Nightmare escapes into Phase 2 then you will lose 1m.
Vergil must activate Spiral Blades while approaching Nightmare because this will instantly cause Shadow & Griffon to stalemate instantly.