bastionmods

For Xion the location will parts of Twilight Town, most particularly the Clock Tower (or what's left of it) and probably some of the Station plaza in front of it, and maybe parts of Tram Common, the Sandlot, The Usual Spot, and a few fragments of Sunset Terrace and The Old Mansion. Some images of the place can be seen here. It's a small semi-urban community, with a lot of warm (in color and temperature) brick, lots of posters for jobs or advertisements and the annual Struggle tournament. There's the occasional garbage bag or outdoor houseplant. Near the parts of the Old Mansion, the area turns wooded, with a few trees here and there.

So far as what can be found, in addition to lots of remnants from the homes of the people who used to live there, there's a chance of finding equipment from some of the old shops near Tram Common - mainly some weaker armor and accessories from KHII (I'd give a link to a list but I can't find a good one). Mainly these accessories and armor will give a slight boost in defense or a slight boost in elemental resistances of different sorts (fire, ice, lightning, and darkness primarily). Also there's a lot of discarded ice cream sticks hidden in corners.

It might be too late for creatures but if not then the aforementioned Shadows'll do pretty nicely.