Board Thread:Episode Discussions/@comment-1181222-20170802095306/@comment-2112031-20170807122758

Starscream1998 wrote: I appreciate there's a sentimentality to the chapter but really it just doesn't make an awful lot of sense for them to just suddenly animate it seeing as the Boruto series starts off post 700 so unless it's in some desperate filler episode we won't see it. Besides, I'd rather see Naruto Gaiden animated than chapter 700 honestly. The Boruto manga starts off post-Chapter 700, the anime obviously started off much earlier, with this episode explicitly being shown to take place shortly before Chapter 700.

There's also the fact that Konoha Shinden: Steam Ninja Scrolls takes place shortly after that and concludes around the same time as the end of Naruto Gaiden.