When Chu Liang found Venerable Azure Dragon, he was supervising the reconstruction of the Penglai Upper Sect.
Previously, Red Cotton Peak had acquired Penglai, and the remaining Upper Sect disciples had started working under Chu Liang along with Yang Shenlong. At first, some might have been reluctant, but as the generous compensation started flowing in, everyone accepted the new reality.
To facilitate the work, most of the Penglai disciples also resided at Red Cotton Peak, which gradually became like a new gateway for Penglai.
The recent destruction of Red Cotton Peak made the people of Penglai realize that although they depended on Shu Mountain for sustenance, they couldn't afford to stay too close to it. Now that Shu Mountain Sect was a prominent target, living there meant inevitable involvement in troubles.
After all, they were, in truth, the first to stir up the wind.