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The primary reason why there are no demons in Shen Zhou is the boundless Emperor's Aura and the deterrence of the other Two Religions.
Now that these Two Religions are preparing to topple the Divine Dynasty, amidst the internal chaos, the demon groups finally have an opportunity to turn the tables, how could they possibly miss it.
The Wolf Demon from before is a prime example.
The old Monk openly revealed the creature's origins, not at all seeming like the demon had betrayed its old master to side with a Great Sect.
Instead, it seemed more likely that the old master planned to make a move and sent a subordinate to scout out the situation first.
"Do you know the Southern Emperor?"
Shen Yi recalled the change in Wushan's expression upon hearing this title.
"Ah?"
Wushan suddenly clenched his fist, opened his mouth: "Why, why ask about this?"