They escape through the garage, where Rick's backup portal is a Blu-ray player. He shoves Morty into the loading tray.
Rick defeats The Encoder by re-encoding him as a GIF —looping endlessly, no sound, 256 colors max. The T-rex, now calm, becomes the family pet (until it eats Mr. Poopybutthole in a post-credits scene).
The T-rex roars, and the living room window shatters. The dinosaur steps out of the TV, crushing the coffee table.
THE ENCODER: "You think lossless is freedom? Fool! Lossless is chaos . I will bring the holy trinity: small file size, direct play compatibility, and no subtitles hard-coded."
MORTY: "Oh, jeez, that's worse. That's so much worse."
RICK: "Always download the Remux, Morty. Always. burp "
Morty, back on the couch, stares at the ruined living room.