This is the free demo that Capcom released on March 9, 2023 prior to the Remake being released. The village time took me just about 5 minutes before the bell tolled.
See below the video for a map of the village with important items/areas marked.
The shotgun is in the northern most two-story house, there’s a grenade in the glass cabinet next to it and shotgun shells on the bed.
I found a headshot followed by the melee kick to be the most effective way to kill enemies. Note that the neck didn’t seem to trigger the melee prompt. Also, you have to remain close enough to the enemy for the prompt to appear. If you’re too far back it might not or you might not reach it in time before they recover.
You can stealth quite a bit of the village and get some loot before being alerted. While loot boxes tend to be random, there will always be a green plant on the left/north path behind the houses and a health spray on the counter under the stairs in the shotgun house.