In short, I say yes to arrangement, no to covers, wherever possible, for Touhou music (and vgm overall). It’s not always necessary (especially for relationships where lyricists aren’t involved), and often isn’t followed, but here’s what I personally do when I’m in your shoes:
- Work on one Release at a time, and firstly, identify what tracks on the Release are arrangements of Touhou (or other) music.
- Use the Relationship Editor on that release page to create and link works for the recordings you identified in Step 1.
- On these works you’ve just made, add, at bare minimum wherever possible, three relationships:
- Source (‘arrangement of’ relationship)
- Arranger
- Lyricist (wherever applicable)
As for the vocalist, add that as a “vocals” performance relationship to the recording, and other performers (for things like instruments, whenever they’re listed) get the same treatment.
If you have two versions of the same arrangement, I’d say link both Recordings to the same Work, but obviously the Recordings with different performning vocalists would have different Vocals relationships.
You can see this Work by Silver Forest and its linked source and recordings, for an (old) example of how I arranged something in a similar state to what you’re describing: Song “霞舞う月の丘に” - MusicBrainz
There’s kind of a line separating the “concrete” and the “abstract” on MBz, with Recordings and Releases being on the concrete side of this line, and Works occupying the abstract side.
MBz has the Releases and such for the various Touhou soundtracks, but linked to all the Recordings on those Releases, are Works for each track. Those Works are organized into parent Works for the game they’re from, and those parent Works representing the game are collected into a Series right here: 東方Project - MusicBrainz
This is a way of cataloging video game music on MBz that I’m massively fond of, and I like to give soundtracks this same sort of makeover whenever I’m working on them… but this is getting off on a tangent Point is, you can use that page to hopefully find whatever Work for the source tune you need in order to establish the link to the arrangement.
Best of luck and happy editing!