StarkillerAG said:
I personally think Rey Palpatine needs to go. I couldn’t care less what the canon says.

Amen!

[Option] 2. Rey accidentally killed her parents, causing a conflict over her inner darkness. . . .

Option 2 is the most difficult, although the payoff might be worth the extra VFX work.

I don’t think it’ll prove that difficult (depending on how much one wants to elaborate on it with flashbacks or visions). The initial “killing” would be a short clip involving splicing together Rey’s flashback of her parents leaving (TFA) and her hand in the air shooting lightning (TROS).

I also intend to pad the backstory with parts of this excellent 9-min. fan film:
https://www.youtube.com/watch?v=8zRGaVi59bs

I’ll also insert flashbacks and a Dark Rey vision into her interrogation.

It also occurs to me that possibly Dark Rey could be combined with Force-lightning attacking Resistance ships in TROS, so that she fears destroying her own friends. “Always in motion, is the future,” said Yoda – so the Force-lightning attack would be an actual glimpse of the future, only she thinks she’s the attacker, rather than Palpatine.