I'm not giving opinions on the match, because I don't know Tifa that well and I don't want to look too much at the profile for spoilers (I have both versions of FF7 in the backlog), but Morrigan's dream manip isn't combat applicable, since she basically sucks brain liquid from sleeping people, and we have no evidences she can use her soul manip on healthy individuals and not only on much weaker or straight up defeated foes.
I don't know where the Makai thing comes from tbh, if you refer to the Shintai, that's a thing Jedah made overtime by stealing souls. If you refer to him using the souls of countless demons, that's something I read on the wiki but of which I didn't find any confirmation in any source, just him using Ozom's soul after quickly defeating him.
Unfortunately, her body odor hax doesn't work on women, but her blood and saliva do, but I don't know if Tifa resists poisons (you said she resists her passives, so I guess corruption, madness and stuff like that).
And Morrigan scales a bit above 4X baseline, since Pyron's orbital path alone was over two times the Milky Way, meaning that he was at least larger than that, and Morrigan dobuled her stats by merging with Lilith.
(Also, I'm happy of seeing another Darkstalkers match, keep going with them, people)