I think Dom’s basically goes into as little detail as possible regarding her parents. Basically Ochi captured her parents, couldn’t get an answer out of them (maybe they were too drunk? Lol), and he killed them because he felt they were useless. At least that implication is left up to the audience. It isn’t spelled out either way.

It would require more changes, but I would personally want to cut out any mention of her parents completely (besides when Kylo mentions them in their first force bond). You then could change Rey’s vision earlier in the film to be about the future, and the battle at Exegol. She sees her friends in danger/dying, and she sees herself on a throne. Keep this vision separate from Kylo, they don’t share this vision together.

Then during their force bond duel, Kylo can say he also knows about the vision, because Palpatine saw it too. You replace the moment of Rey remembering her parents dying with seeing Finn/Poe dying/in danger again. Kylo tells her that she needs more power. So she gets angry about it and swings at Kylo some more. Then, in the hangar, he tells Rey that Palpatine saw what she would become. She will Palpatine and take the throne. This confirms to Rey that what she saw might actually come true.

Want benefit to this is it keeps Rey’s motivation to want to kill Palpatine. If she doesn’t, her new family dies. But the only way to save them is if she takes the throne.

I think having this dilemma haunt Rey helps lean into the question of having to sacrifice your morality to save the people you love. Palpatine presents her with one dark path, and Kylo presents her with another dark path. In the end, though, she finds that alternate path where she maintains her identity as a Jedi.