I decided to reread my Project Superpowers comics in the reading order I put together. (I'm only missing 14 of the 68 issues of what I have decided is my canon.) Chapters 1 & 2 and the initial spin-offs read like a cohesive story and universe. Black Terror doesn't even really become a solo book until the last 4 issues or so. The Owl spin-off - about 2 years removed from the rest of the line - is like reading Batman or Daredevil after reading a long stretch of Justice League or Avengers. It could easily be the same world, just a different corner of it. Then comes "Volume 3." Here are some of my thoughts.
It starts decently. 'Devil appears to the Green Lama. Lama knows Bart Hill is dead and the being is revealed as being the sentient costume (as previously established). He can talk now, but we mention that it is a new development. They review the story of the Fighting Yank and the urn. The 'Devil was previously hinted to have been a demon, while this volume implies he is possessed.
Now we see the American Spirit being present at a Superpowers battle in WWII Normandy, though that was never the case in the previous issues. In Chapter One, Lama is surprised to learn about the American Spirit. Here, Lama saw him in WWII and it brought him comfort. Then the Spirit shows up in the present, and everyone just knows that the Spirit needs a "new host." This is an element that was never present in the previous storylines.
The transformation of NYC into New Shangri-Las is ignored in this series. NYC is plain old NYC. Instead of it being a haven for the returned heroes, most of the heroes have gone into hiding.
Masquerade's powers are now altered without explanation. She can just remotely possess people. Previously she needed to be next to them. Also, she is called Masquerade during the War flashbacks, while previously she was acknowledged as Miss Masque.
We then meet our alien antagonist, P:andora. I have no issue with having an alien threat. But he is after "his" urn, stolen right out of his chest. Previously, the Urn was created by Zeus (as in mythology), and given to Pandora, who already exists as a character in this universe. He kills the Green Lama without even a fight. His "box" (while he mentioned the Urn, which we know was destroyed) is now shown as a glowing cube hidden in the dimensional folds of the American Spirit - again, a new idea never previously hinted at.
More nit-picks:
While P:andora wreaks havoc, no other heroes show up. We were told they exist, but apparently decided to sit out the alien invasion.
Samson now claims to be a descendant of the Biblical Samson, while he previously believed himself to be THE Biblical Samson.
Black Terror's flying galleon has vanished and the currently assembled heroes take P:andora's spaceship as a flying headquarters.
Many of the characters, whom previously had individual personalities, are now spouting quippy MCU-style dialogue.
This series was five years after the Owl mini and ignored or retconned a lot of previous continuity. On its own, it's a decent story. As part of the greater universe, it is lacking. I am disappointed that Dynamite chose to ignore/alter the continuity that flowed so strongly for the first 6 years of connected books. It was followed a few years later by Fractured States, which, having it's own inconsistencies, is more in line with the previous books, but contradicts some of this volume. Now we're several years removed from even that "Days of Future Past"-esque tale. I hope to see some kind of revival in time for the 20th anniversary of Chapter One in 2028.