After the Pilot episode got rave ratings from the viewers, the Network1) gave the Watcher permission to take the Island into Season One.2)
Season One was different from the Pilot with changes aimed at removing the unpopular portions of the show where possible.3) An important change was the complete reset of all contestants so that they would not be able to use the powers that they had gained from the pilot's holes in the space-time continuum.
The contestants of Season One were encouraged to battle each other for personal supremacy. This included a scrapyard4) in Cyber City 404 that was used for scavenging bits of scrap to build weapons and armor for
personal use fun and profit. It also included contestant dickery on a level of twentieth century America's Survivor, until eventually reality decided that the universe has higher standards than CBS, dammit.
The shops were much the same as we know them now, save for reality being rewritten getting eBoy a renovation, and Ella (a dance teacher in Kittania), Heidi (also in Kittania, who had a mystical candle that would help you work faster and longer), as well as Koga of NewHome, who owned the shop that sold one's custom-made items all being erased from Island Four.5)
In other words, this is the world you're standing in.6)