I tried out the Arena just now, and was getting frustrated because even though I had two of a given Model/Companion, they weren't combining, making fights against later bots impossible. Then, with the help of a forum topic, it was explained that the cutoff is three or more of a given Model/Companion, not two.
The tutorial currently says “Multiples of the same model will combine automatically to achieve higher levels, with 3 stars being the max level.” This was unclear to me, because I understand “multiples” to mean “two or more.” I would recommend that for clarity this sentence be changed to something like “Three copies of the same model with the same level will combine automatically to achieve higher levels, with 3 stars being the max level.”