How the setting creates the mood is because when the egg was hatching, he was scared and kinda excited at the same time. It sets that mood because the Author didn't know what it was going to be too.
I think the setting is affecting the characters because the fire burnt down almost everything they had and it said the Mom didn't have any shoes because her feet were tiny so the neighbors didn't have any shoes in her size.
How the characters evolve in the plot is when the egg started to hatch and it came out so when the characters friend touched the egg, she said it was hot and it smelt like cinnamon and clover.
The conflict is when the character found the nest which had the egg in the ashes of where the fire was.
The address of the resolution is when the character struggles to find clothes and things that are needed in a daily life because their house burnt down.
The event that changes is when after the Phoenix was born, the character got to reunite with their dad and he smelt exactly the same as the Phoenix.