The Mandalorian Season 2: 10 Biggest Moments And Reveals In "The Marshal"
7. Return Of The Jedi Fallout
Din Djarin and Cobb Vanth reach a deal: if the bounty hunter helps rid Mos Pelgo of that creature - a Krayt Dragon - he will give him the Mandalorian armour back. As they set off on their mission, the marshal reveals that as his fellow townspeople were celebrating the destruction of the second Death Star, when a mining guild arrived to enslave them.
The Empire may have been defeated, but that just opened the door to another group taking their place (something which says a lot about the state the Rebellion left the Galaxy in after their victory).
Vanth was able to flee, and after stealing some crystals from that invading force, he's "saved" by Jawas who are keen to give him anything he wants from their collection in exchange for those precious jewels. He chooses a familiar armour which they've come across, though there's no explanation for where they found it.
However, as this flashback takes place just days after the events of Return of the Jedi, it's clear now that Fett didn't spend a huge amount of time trapped in that Sarlacc Pit.