For clarification, recently Fujino tried to show some more light/clarification on it, but yes, this game basically is an AU from Canon SAO straight up after Aincrad/Arc 1. All the facts we know: Asuna (And probably the other random players) still got trapped in ALO by Sugou (Where he abused her more sexually than he did in the actual show, albeit he didn't actually get to fuck her as Fujino stated), but unlike in Canon Kirito never actually got the clue to find her in ALO at all so he never went into the game or met Leafa, as it should be obvious (We actually don't even know if Suguha played ALO in this universe actually, that was made very unclear and confusing between her talks with Hebishima and the fact she clearly didn't seem into any game before being dragged into FOG). Instead, Sugou was plot-conveniently found out by Asuna's dad and discovered/arrested once his scheme came to light, despite how impossible that should have been, but it's just further part of Fujino's NTR-verse logic to deteriorate Kirito and Asuna's relationship post-SAO XP (Also Asuna got trauma from that unlike in Canon too, as we recently learned).
After that, things went pretty much as we have seen them in Part 1 and 2. Also, yes, GGO never happened, because it doesn't even EXIST at all (Or shouldn't at least, Fujino could 100% contradict himself by mistake later given his lack of care for Canon-consistency) because it was a game that was made by the Seed after Kirito released it with Agil's help after ALO...in this universe he never got the Seed from Kayaba because he didn't go through the ALO arc at all :O (And the council seems to think he did for some reason and be after it...despite it being just, you know, a tool to more easily create VR worlds in Canon and nothing more, but they seem to be after it like it was the Holy Grail from Fate for some reason. Is extra-fucking hilarious if you like me remember Canon and know that if Kirito had it he would have released it for free open-source for anyone to download and use XD).
