In this timeline, Naraku was chosen to be the Guardian of the Reincarnation Sphere containing Kagura and watched over it from a young age until Kagura's birth. Naraku would never leave the room with the Sphere, and thus did not interact with anyone else in the village.
In this timeline, the Mikagura Sisters meet a young Kagura when they were all kids, and would regularly play with her in secret. One day, Kagura warned them to evacuate the village due to an impending Yōma attack, but the Sisters didn't out of fear of getting in trouble for playing with someone they thought was an outsider.
Kagura ended up sacrificing herself to stop the Yōma from reaching the village.
After the conclusion of the festival, they returned to the shrine along with Sayuri. There they received an invitation to the Peach Beach Splash, but initially chose not to attend, only arriving later once things became more serious.
If Shinobi Master Senran Kagura: New Link is in this timeline, then when they returned to the village they also brought Kagura and Naraku (who they met at Peach Beach Splash) with them. Later the five of them would join in the Shinovi Masters Tournament with matching shrine maiden uniforms.
Like in the New Link mobile game, Naraku and Kagura are shown to have returned to the village with the Mikagura Sisters. Fubuki travels here and personally challenges Kagura and invites the group to the Shinovi Masters Tournament.