Kaiserredux is a Hearts of Iron 4 Kaiserreich standalone fan-fork branching off from the original KR lore to bring players a more interesting experience, with more paths and options to choose. KX is focused on providing content that is fun and has the main goal of expanding the existing KR content, while also reworking certain neglected or poorly-done nations for the better.
Mussolini's faction split from the SRI (Don't bother why) and merged with ANI (They forgave him).
Italy thrived under this schizo timeline (Russia went Gorgulov, France went Thorez, Austrian Empire had revolts literally everywhere, Visegrad Pact formed, also Genghis Khan II conquered China because he bought tons of weapons from Italy), defeated the Cairo Axis.
Duce Ciano saw this chance and sent Mussolini all the way to the gulf. In the following years Mussolini dissolved a lot of his socialist thoughts and became a de facto corporatocracy representative.
Italo Balbo on the other hand was sent to the Levant. His Jewish sympathy and charismatic character made him a rather popular figure in this already-war-torn land.
War Hero Ettore Bastico became the commander-in-chief of the reconquered land of Cyrenaica. He played a rather hands-off style in the colonial affairs.
(Ethiopia somehow lost to Somalia so I cannot form the AOI, also Amedeo was the King so it made no sense sending him there, didn't want Rodolfo Graziani to gas the Ethiopians either)
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