
Seth (the evil god) and his son Anubis (the boy with short black haired) are fighting because Anubis secretly betrayed his father by letting calling the other gods on him (most probably through Thoth, the god of wisdom with the blue ponytail who is seen comfortingly holding a regretful Anubis by the shoulders). And no, Anubis doesn't die due to his injuries from their fight.

They're basically telling how it is that the other gods "suddenly" showed up to prosecute the vil god, Seth.
It's because his son Anubis had had enough (just like he was telling his mother, the imprisoned blondish goddess, in one of the first chapters) and decided to call the other gods on his dad (since they're all basically his aunts, uncles and grandparents).

He doesn't actually die, don't worry.
He just ends up needing to lay low for a while, to recover.
And... the people he thinks are his parents so far are not exactly whom he thinks...

This is already posted as a reply to a comment above (a more recent comment), at length. If you still want to know, check out that one.
I might be dumb, but I can't keep up with the pace of this manga....so, anubis was remembering his good old days and now he has been kiled by Seth, his dad? And how? wasn't seth giong to be prosecuted or something by the other gods?