But there's an inherent flaw with Chronicles of the Sword being part of the canon, that being that while, obviously, the story of SoulCalibur is high fantasy fiction, it's still based in reality, some things added for the sake of the narrative, but it's mostly played straight to be, if you take into account the existence of the two swords and what they do, possible to take place in our real world. Chronicles of the Sword goes against this idea, with these warring nations that don't exist and don't really have real-world counterparts. Go ahead and find Grandall, Dalkia, Halteese, Maletta, and such on our world map. I'll wait...
I'm aware you could rework it and retcon it into the existing countries and make it fit, but as I am a strong opponent to the idea that SoulCalibur VI (and thus SoulCalibur VII and beyond) is (would be) retconning anything, I wouldn't be okay with this. They're keeping everything the way it was before, and changing the narrative to fit Chronicles of the Sword in with the main story would just be tacky and obtuse. If they want to bring it back as its own separate entity and expand upon it, that's fine, but it just doesn't mesh with our story.