What about the color scheme? For these Nagas, dark is the upgrade, and light is the alt-upgrade, but for the Kirin and Toads, it's the opposite. It always seemed to me that the dark Nagas should be the alt-upgrade, i.e., the destructive aspect of Shalassa, as with all the other units.
This can be fixed later; the colors changed due to a change in concept.
The logic is as follows: the Faction has a ruler/founder – the upgrade originates from him, and the alt-upgrade is created after the Faction is formed.
Another important point: I don't like the Lotus Empire, so the Faction is independent.
Initially, there were wealthy mercenaries and Kabukimono pirates – guys who created a base for themselves on random islands where they hang out and enjoy absolute power and freedom, and the alt-upgrade was ascetic but crazy and bloodthirsty Kensei, who don't want to build a Faction because they are patriots of the Lotus Empire. They live in pirate fortresses simply because they have no choice – the path home is closed to them, but as a sign of loyalty, they carry their banners and fight as Kensei.
___________________________
And now, POOF – a change in concept, it's no longer the deep Nagas, or deep Nagas from a special Clan with snake faces – a specific CLAN has appeared, which means this is not a gathering of bandits, but a normal army with a daimyo.
This is where the change in upgrades occurs – now the Nagas with banners and in traditional Kensei armor have become the basis, this is the army of the Clan from the time of their loyalty to the Empire, and the richly dressed mercenaries, who rely on magical equipment, have become some kind of second force – maybe some samurai cosplayed Burgundy and did very well, becoming richer than the lord, or maybe this is the army of some cult corrupted by gold (the cult cannot be ideal, because otherwise it would not be in the Outcasts campaign), or maybe this is a trading company's army??? There are many options, but I haven't chosen anything yet.