You also need 40 chips and remember to fall down the first pit in that level. I did twice and then it showed up. I think you have to be at zero lives left and remember to not get hit on the way to the pod, you need full health but I'm not sure if you need to not get hit too but it's good practice and easy to do.
I did collect all chips, but I already skipped the hadoken and went straight forward in the game, Idk when I'll be able to do it again, maybe until I beat the game, but how am I supposed to get 40 chips when I 100 percent every stage and their aren't any chips left to collect? Overall, thanks for the tip though, I'll give it a try when I have the chance, thanks.