Naruto might initially be shocked by the council's demand, but then he would likely stand his ground. He has always fought for his place in the village and to be recognized, and his power is part of that. He would tell the council that his power is for protecting the village and its people, not for them to use as they please.
Naruto would respond with a mix of anger and determination. His power is a result of his own struggles, from being an outcast as a child to training hard to become a strong ninja. He would see the council's demand as unjust. He might try to reason with them at first, explaining how his power has been used for the good of the village in the past. But if they don't listen, he would be ready to fight to keep his power, because it's not just about the power itself, but also about his identity and his place in the village.
They might be critical of the inaccuracies in the fanfiction regarding Jedi teachings and practices.
Naruto could also show his hatred through his actions. Maybe he refuses to cooperate with any mission or task that is directly related to the council's orders. He would rather do things his own way or follow the orders of someone he trusts more, like Kakashi or Iruka.
For Ruby, the Naruto fanfiction would open up a whole new world of adventure. She'd be completely immersed in it, sharing her favorite parts with her team. Yang would have a blast reading it, especially when it comes to the powerful and flashy ninja techniques. She'd probably try to imitate some of them in a playful way. Weiss would analyze it from a literary perspective, critiquing the use of language and the pacing of the story. Blake would find the stories of the Naruto characters' growth and struggles to be very relatable, and would think about how similar themes play out in RWBY.
Some villagers might be shocked and horrified. Naruto has always been seen as a hero, and this act of killing the council would shatter that image for many. They would fear that Naruto has gone rogue and might pose a threat to them.
In this kind of fanfic, Naruto might respond with defiance. He has always been a character who follows his own path. So, he could simply ignore the council's demands and focus on his own training regime to grow stronger. For example, he might continue his intense physical and chakra training with Jiraiya, believing that his way of getting stronger is more important than following the council's old - fashioned ideas.
One reason could be that they want to enlist Naruto's help for a particular mission. Since he has unique abilities as a jinchuriki and has proven himself in many battles, they may think he's the best person for the job. Also, they might call him to clarify some misunderstandings. There could be rumors or false information about Naruto circulating in the village, and the council wants to get the truth from him directly.
Maybe they lack fresh ideas themselves and hope to get inspiration from fanfiction.
Sasuke would be annoyed at first. He sees Naruto's new interest as a distraction from their real goals as ninjas. But as Naruto becomes more skilled by adapting Power Ranger concepts, Sasuke would feel a bit of envy. Sakura would initially be worried that Naruto is spending too much time on this new 'hobby'. But when she realizes it's actually making Naruto more confident and better at combat, she would support him. And for the other friends like Kiba and Akamaru, they would be intrigued by the cool suits and gadgets of the Power Rangers that Naruto keeps talking about and might even want to check it out for themselves.
Well, in fanfiction when Naruto releases his power, it could result in some wild and creative scenarios. He could end up using his power to explore new dimensions or time - travel. His power might also attract the attention of ancient and powerful entities. Imagine Naruto using his power to communicate with the spirits of past Hokages in a more profound way, getting advice and unlocking even greater powers from their wisdom.
I think some of the younger ninjas in the village would support Naruto. They look up to him as a role model. Also, those who have been helped by Naruto in the past, like the families of the villagers he saved. They would see that Naruto is fighting for what's right and would stand with him against the council. Additionally, some of the outcast ninjas who feel oppressed by the council's rules might also join Naruto.