It could mean that she has read or been exposed to a sufficient amount of 'Encanto' fanfiction and doesn't want any more. Maybe she's found that a lot of it is repetitive or just not to her taste anymore.
She might have found that the quality of the 'Encanto' fanfiction she's been reading has declined. There could be a lot of poorly written or unoriginal stories out there, which made her decide she'd had enough.
You could try reading fanfiction from other Disney movies like 'Moana' or 'Frozen'. They also have rich worlds and interesting characters that can provide a great reading experience.
Take up a new hobby. It could be something like painting, where you can express your creativity in a different way. Or you could try gardening and get in touch with nature. These new activities will keep you occupied and help you move on from 'Encanto' fanfiction.
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.
There are also some Encanto - specific fanfiction communities on social media platforms. For example, on Tumblr, there are often users who share and recommend Encanto fanfictions. You can search for tags like #EncantoFanfiction and #Madrigals to find some great reads. Additionally, some Discord servers dedicated to Encanto might have channels where fans discuss and share their favorite fanfictions about the Madrigals.
One interesting storyline could be exploring the unshown daily lives of the Madrigals before the events of Encanto. For example, how Julieta manages to cook such magical food every day and what kind of experiments she might have done in the kitchen. Another could be a story about Bruno's time in the walls from the point of view of the other Madrigals, like how they might have unknowingly interacted with him without realizing it was him. There could also be a fanfiction focusing on the younger Madrigals and their playtime, and how their powers influenced their games.
It could be Harry Potter. Since the Harry Potter series is extremely popular, there is a vast amount of fanfiction written about the character Harry Potter. So it's very likely that this 'Harry' refers to him.