Incense Fire Merit, Xiu Nuo last saw this thing on a member of the Demon Race.
It's like those mountain gods and land gods deep in the old forest who are worshipped by mortals, and the River Gods and Dragon King Temples by the great rivers in the mortal countries.
Although these fellows are all of the Demon Race, they are not like that group forced into the deep mountains by humans. When orthodox Cultivators meet them, they won't call them demons but would address them reverently as Divine Positions.
Even the Demon Race would treat them with respect.
The Demon Path would... need to run far away if they're of the same level.
This thing has a bonus against the Demon Path. Cultivators refine the forces of heaven and earth for their own use, while these righteous deities control the heaven and earth within their domain.
One could say that Incense Fire Merit and the Demon Path are naturally opposed, even more so than orthodox Cultivators and Demon Cultivators.