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Yes, Master Gu was the fated villain, but originally as a stepping stone for the first emcee. Just reread Chapter 1 and you'll see the plot armor so clearly and the logical ways Master Gu used to defeat him right off the start. And Master Gu's status as a reincarnator, regressor or transmigrator is a tad hard to explain... but to put it overall, Master Gu is both a regressor (having a future foreseeable event) and a transmigrator (system guidance, plus his knowledge and wariness of plot armor). Regardless of his status, yes, Master Gu is without a doubt, an UNDENIABLY TERRIBLE EVIL who wears justice and righteousess as a mask for appearances and deception.
While most evil people are separated between those who are either means-oriented or result-oriented. Take Yi Zaha's philosophy (The Return of the Crazy Demon's MC) for example, he knows he's a crazy demon himself for killing people (a villain for conducting immoral actions), but he's also aware that he's slightly better than most if not some others for not killing innocents (fighting fire with fire, being evil to kill evil). This makes Yi Zaha either a technically natural good hero, or a literal means-oriented villain.
And Master Gu is obviously a result-oriented villain, as we have already witnessed up to now.
Natural justice to me, is someone who is like Master Gu but without manipulation. Someone who naturally wins over hearts and reputation via their own actions and deeds (sort of like Master Gu still), except that Master Gu did so just to become to ideal of people's eyes for his own use, while a true person of justice should expect nothing in return, only did so out of the goodwill of their own.
At least the three eyed dude finally grew some brain cells, buying time allowing the smarter one to flee. But not in the right dirrection (thinking process)... they'll die like rats for real.