Here is why i think it is the first category.
Oda draws a clear panel with the adv coc leaking from zoro in jinbe reaction.
With shanks we see the hilt of his sword to which we still see adv coc being leaked, and when he attacks kidd it is just like the other panels you described in option 2 with no adv coc on shanks blade
In the third panel when shanks lands he is leaking coc haki just like zoro is leaking coc haki after defeating lucci and when we see his face we even see coc haki around it, again just like zoro panel defeating lucci.
Ultimately feel free to use luffy and zoro and kaido in wano, but thats not the only way oda depicts it otherwise you would have to disagree that shanks used it vs kidd which has both of your depictions in it.