>>280893461
I think all in all Kyora lost because he failed to adapt to the circumstances. Since they passed down the store room sorcery, there has never been two people with that same power at the same time so Kyora didn't know how they would interact. Once Hakuri developed that power he had the surprise factor and had time to probe for Kyora's weaknesses, mainly prying his storeroom open and letting someone else in.
At that point it was a constant barrage of surprise tactics that kept him on the back foot (sending Chihiro in, using kuro to remotely register and extract the hostages and finally the hologram trick) forcing him to use Magatsumi. Once he did so, it was checkmate.