In terms of mechanics, this is true. The original Persona 4 Arena released as an arcade game with no story mode. Several DLC characters were added over time. The console version (which was being worked on at the same time) was developed with a full story.
After the first version was completed, ATLUS begin writing a sequel, as Arc System Works began working on slightly tweaking the characters, mechanics, and developing more characters. While the second version released in arcades as Persona 4 Ultimax, and featured little more than the mechanical refinements, the home port again had an entirely new and separate story mode. It follows after the events of the first game. They tweaked how it is formatted as well, so the story doesn't follow the same structure as the original game.




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