They might be really surprised. Some characters could be flattered by the positive portrayals in the fanfiction. For example, Mirabel might be happy to see different interpretations of her story and how she's seen as a hero in some fics.
Encanto is about a magical family living in a hidden place in Colombia. Each family member has a unique gift, but the main character, Mirabel, doesn't have one. The story follows her as she tries to save the magic of their home.
Encanto is an original story. Disney's team of writers and animators came up with the concept and brought it to life on the big screen. It's not a adaptation or retelling of another story.
Indeed, Encanto is based on a story. The creators combined different imaginative concepts to bring this story to life, featuring themes of love, unity, and self-discovery within a magical setting.
There could also be characters who are a bit skeptical. Dolores, with her ability to hear everything, might be able to tell if the fanfiction is based on real events or just pure imagination. If it's too far - fetched, she might be less impressed. However, overall, most characters would probably see it as a form of celebration of their story and be at least somewhat entertained by it.
First, do some research on the Encanto world. Understand the characters, the setting, and the magic system. Then, think about what the cut - winged butterfly could symbolize. It could be a character's insecurities or a broken family bond. Next, create a plot. For example, a character discovers the cut - winged butterfly and decides to help it. As they do, they face obstacles that are related to the problems in the Encanto family. You can also add some original characters or expand on existing ones. Don't forget to give your fanfiction a strong beginning, middle, and end.