From memory: you need to advance the werewolf quest with her before she is put into house arrest. Do all scenes with her in the forest (hide seek etc) then concentrate on her father (Cult story) and Mother. You need to unlock her lust path (NTR choice) and then start either denying her or satisfying her first and also involve her family and Rick.
Her being put under house arrest comes later in her arc (after NTR choice with hunter, the werewolf blood sex scenes, after her father is disclosed as the
and after getting the special ability to damage werewolves, which is a quest in itself.) Essentially, you need to do a lot more in other quests first.
It's essentially her "end state" for the arc before you unlock her full Mother's Clothing Xformation, which unlocks her for Tribal Village content. And yes, you should max out the shared Kate / Arianna stuff during this path, it's the only current way to add corruption points to her.