We study experimentally and numerically the dynamics of a recently found topological phase transition for discrete quadratic solitons with linearly coupled SH waves. We find that, although no stationary states are excited in the experimental situation, the generic feature of the phase transition of the SH is preserved. By utilizing simulations of the coupled mode equations we identify the complex processes leading to the phase transition involving spatial focusing and the generation of new frequency components. These distinct signatures of the dynamic phase transition are also demonstrated experimentally.