For Anyone confuse with the Time loop Ending(Spoiler) Wild ARMs 5
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Don't think too much about it, as it's flawed, the whole loop scenario is meant to confuse people, boggle their mind, have their own interpretation and to create an illusion of a complicated story.
But reality, it's based on the question who was first the Egg or the chicken? Surely, Time paradox will occur without a creator/god who will create the initial egg or chicken.
The same can be applied to the missing initial events(or first loop), as it was not shown ingame because it cannot transpire where Avril memories already exist in the future(she knows what will happen) where as, she is yet to know them in the past.
neither can be proven, i enjoyed the game and now i'm playing Xenoblade X which I totally recommend to rpg lovers, with it vast open world and massive customization. P.S. play the game without strategy guide it will be both very rewarding and challenging.