In “Doctor Strange in the Multiverse of Madness,” Stephen Strange discusses the multiverse-related issues he recently faced with Spider-Man when America Chavez (Xochitl Gomez) asks him if he has experience with the multiverse . When America then asks who Spider-Man is, Strange says he is someone who has the powers of a spider and never actually names Peter Parker throughout the conversation. This establishes that Spider-Man’s character was not erased from the existing world, only Peter’s memory. Additionally, the things Spider-Man has already done, including fighting Thanos (Josh Brolin) as part of the Avengers, as well as Vulture (Michael Keaton) and Mysterio alone, remain part of the canon in the MCU.
The new scene shows how the spell is portrayed in the climax of Spider-Man: No Way Home, when Doctor Strange tells Peter that activating the spell will make everyone forget him. Peter’s strange oblivion himself makes him reluctant to pull the trigger to activate the spell until Peter assures him it will be okay. The fact that Strange still remembers Spider-Man proves that only Peter’s memory is erased by the spell. This is also reflected at the end of “Spider-Man: No Way Home” when Happy Hogan (Jon Favreau) and Peter meet at Aunt May’s (Marisa Tomei) grave. Happy says he works with Spider-Man, but little does he know that he knows who Peter is.