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Ghost Town is the third stage of Sonic Forces and the introductory stage for Classic Sonic, it's a completely new stage, set in the same city featured in the second cutscene of the game, totally destroyed, ablaze and terrified by the Eggman Empire's domination.
In terms of plot, after the formation of the Resistance, Tails feels lost without the presence of Sonic and then leaves the group. In the chaos of the city, Tails finds Omega and tries to repair him, but doesn't realize that it is being observed by Chaos and tries to attack Tails that perceives it and asks for help, nevertheless the god of the destruction is prevented when Classic Sonic leaves a interdimensional portal and saves him. Tails imagines that he was saved by Sonic, but soon realizes that it is actually his version of another dimension.
Ghost Town shows a scenario of complete chaos and war in the background, with structures, buildings, houses, among others being destroyed by hordes of Death Egg Robots and other Eggman Empire robots. Overall, the city's structure has influences from some real cities like San Diego, it also features an underground section in the sewers and to the bottom mountains and hills of land and grass that resemble Green Hill, plus it is a coastal region.