A Swordmaster's Path Is Paved With Broken Blades

Find the next person who lost their Vision. Head to the suburbs of Inazuma City, southwest of the blacksmith. You will encounter Domon's disciples, Junya and Nanako, who explain that their sensei, Domon, has fallen into madness since losing his Vision and is preventing training. They believe he is possessed and have enlisted help from the Grand Narukami Shrine.

Wait until night for the exorcism (18:00 - 24:00). Speak to Junya again. He mentions Domon whispering the name of his former senior, Anzai, whom he defeated in a duel. As Junya leaves to get water, you spot someone suspicious lurking near the house, who then runs off when noticed.

Follow the suspicious person’s traces (0/3). The first trace is at the bottom of the ramp east of your location. The second is further up the ramp to the south, near crates. The third trace is at the top of the ramp, where you find the suspicious person. This person is revealed to be Anzai, Domon's former training partner, who explains he was hiding because he didn't want to see Domon after being humiliated in a duel. He heard rumors of Domon's madness and Domon speaking his name, prompting him to check.

Return to the exorcism site. Head back to the dojo. You overhear Nanako telling the shrine maiden, Inagi Hotomi, that Domon isn't possessed. The maiden cannot find a spirit and suggests going to the Grand Narukami Shrine to speak with Lady Yae.

Go to Grand Narukami Shrine to see the head shrine maiden. Travel to the Grand Narukami Shrine in the northern part of Narukami Island. Behind the building, you meet Yae Miko. She explains that Domon is not possessed but is suffering a spiritual collapse due to losing his Vision. Domon mutters apologies to his father, former sensei, and Anzai. Anzai emerges and confronts Domon, urging him not to strip his disciples of their ambitions. Domon agrees to pass his ambitions on to Nanako and Junya, who express their desire to master the Meikyou Shisui Art.