The area after the second Shrine offers several optional encounters. The main path leads past two Wolf guards and a Wolf Stalwart to a tunnel guarded by the optional mini-boss, the Wandering Wight. This enemy is significantly tougher; it's recommended to run past him initially and return later when stronger. NOTE: Defeat the Wandering Wight before ringing the three large bells to unlock the Chapter 1 Secret Area, as he disappears after the Ancient Guanyin Temple boss.
To the left of the Shrine, past fallen trees, find Purple Lingzhi and Aged Ginseng. Reach a small peak with broken pillars, where a Wolf guards pots with Will. A bridge here is guarded by a Bandit Chief wielding a large sword. He performs agile lunging attacks and multi-hit swings ending in a powerful downward slam, creating an opening. He does not respawn. Defeat him and open the chest he guards. The bridge ahead has a Wolf Archer. Use your staff twirl (hold L2/LT) to deflect arrows, then dash and defeat him.
Explore further: cross the stream or take a small path left to a waterfall with Jade Lotus and another Crow Diviner. On the far side of the stream, near the archer's bridge, find another optional mini-boss: Guangzhi. He's more approachable than the Wandering Wight. If you catch fire, use Cooling Powder and Evil Repelling Medicant for damage absorption. Guangzhi uses a fiery twinblade. Dodge his charging combo (three jumps and swings) and counter during his recovery. When he spins his blade, wait for two slower horizontal swings. His pogo jump attack is tricky; dodge the last two hits and use Immobilize when he's grounded. At range, he can throw his twinblade like a boomerang or perform a fast dash. Defeating Guangzhi grants the Red Tides Transformation Spell. Collect Aged Ginseng and Will from pots nearby.