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After Izuku was attacked by the sludge villain, All Might was able to apprehend him without incident. Izuku never gets One For All, and the last words he heard from All Might were "you cannot be a Hero".
Izuku finds himself torn on how to move forward, but fate had decided to intervene. After an impactful meeting with a certain Alicorn princess, Izuku finds another way forward. He just wished that path wasn't so extreme.