No, it is not because Ivy that Latomi village got into dire strait. Don't forget, there is another incident around the time Ivy ran away.
The village has speciality, there is some rare fruits that got traded. But, sadly the time for the fruits to ripe is really short time. But, the village can harvest the right time is because fortune teller who know when the good time to harvest the fruit (because her fortune telling skill). But, because fortune teller was left to die when she is sick, so no one know when the good time to harvest the fruit so the fruits they harvest is bad quality and their time become worse from there.
And their parents.... yep I really hate them for making our cute Ivy suffer. But, they got what they deserved. And, no, they are not dead. There is another punishment for them.
Ivy gained many precious and trusted people along the way, they are protective of her.... She gained a good dad too 🤣, she then traveled with him.
Btw. Ivy is not OP, but somehow she have some OP companion.