Indeed, you are correct. His complaint says that he "resides in the State of Colorado." Now he says that he does not, and was not a Colorado resident at the time the complaint was filed.
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These are sworn pleadings and they directly contradict. One of them is a lie.
You are missing another quote from the complaint. From Page 2 of the complaint, paragraph V: "Defendants have engaged in false statements concerning Plaintiff, and published them, of which Plaintiff and others have become aware; Plaintiff has resided in a number of States of the Union including Colorado and Illinois."
It is unclear to me without digging through Montagraph's recent affidavit in more detail whether they actually "directly contradict". You can be a resident of multiple states (NB: "Residence" ≠ "Domicile", although they are often interchangeably used), and the complaint specifically mentions the two states Monty is currently stating he's residing in.
I know it can be difficult for a lawyer to quit in the middle of a case but is there any possibility that Monty's lawyer took the case on contingency only insofar as trying to force/negotiate a pre-trial settlement because it would likely be cheaper for Nick to settle than to fight the case even if he's likely to prevail at trial? And even if Nick were to be Nick and refuse to settle he'd probably still be out without too much investment because it's likely to be dismissed, and that if the judge were to refuse to dismiss for whatever reason he'd be able to abandon ship?
Nick has been pushing hard the line that Schneider only took the case in the hope of a quick settlement. That's obviously possible, but there's no evidence of that.
In this thread, some people were speculating that Nick must have had a poor reputation in the legal community in Kandiyohi County and that Schneider was chomping at the bit to go at him. I thought this was a bit much, there was no evidence of that either, and didn't really say anything in favor of it.
But then we found out that Schneider filed an ethics complaint against Nick, and now there's something that jumped out at me from Schneider's affidavit that has changed my view quite a bit.
Schneider says he had his wife watch the Nick make a fool of himself on the Internet:

I wonder how often this guy sends material from his cases to his wife to look over. It doesn't seem like something you'd do unless you thought it was funny and absurd how a local lawyer you've interacted with before is now a full time streamer, and more than that, a streamer whose bit is being the drunk lawyer man.
I would be interested to now if any dedicated Montegraph watchers knew about this 'secret move'... Also interested in how the judge will look at this oversight... As I recall, one of the early affidavits said he was a resident of Colorado...
If you look at Monty's affidavit, I note in the YT screencaps he's attached at the end where it's some guy following him around CO and filming him, there's a video from May 12, 2020 where the description says that Monty is throwing some of his belongings out into a dumpster and is preparing to move somewhere. Monty says he moved from Colorado to Illinois on June 2, 2020. So it's possible that the "secret move" was known about, even if his destination was not.