Counter argument: It could take place after the film and have conflicts Sora would be better suited for (like heartless showing up). Every family member would be a unique and amazing party member to fight with, the character interactions would be so fun, and the majority of madrigals didn't have their rooms shown, meaning the house could be much bigger and more fun than the movie shown. The village could have sides of it that were a mystery, there could be so many secrets that could make it a bigger and more exciting place. And we all know Yoko will do an incredible job with the music. In conclusion, I think Encanto would be a great world to include in Kingdom Hearts.