We know that Danzo had shisuis right eye before the uchiha clan massacre as shown in Itachis flashback when shisui gave him the left eye. So what if Danzo had used kotoamatsukami on Itachi to convince him to kill the clan for the sake of the village, and used it on the 3rd to convince him to allow it.
The manga pretty much clarified that this was not the case. Hiruzen was just as apt as Danzo was to protect the village and always let him handle the seedier side from his youth, that passiveness is simply his personality.
Meanwhile, with Itachi he killed his clan for both the village as well as to keep the Uchiha's reputation intact (according to what Tobi said to Sasuke as well as what Itachi said to Naruto) and save one of them. If Itachi had been affected by a genjutsu, then he would have completely gone the utilitarian route and killed Sasuke as well- Danzo would not allow a risk such as Sasuke to remain present if he could have controlled Itachi. Nor would Itachi have another motivation (besides minimizing conflict in the village and surrounding areas) that was in the interest of the clan, a clan intent on betraying the village.
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he literally cut off shins arm and attached it to Danzo, either Kishi meant just Danzos eye, or we have a contradiction because shin doesn't have shusuis DNA
Just Danzo's eye.
There was no reason to go to Orochimaru until he had an arm full of Sharingan, which he didn't have until after the Massacre.
Plus shin was created from Shisui's DNA in the first place.
Danzo and Orochimaru were affiliated with each other long before the massacre and Danzo did have his arm wrapped up along with part of his face years before the massacre as well. He also mentioned how every sharingan he was in possession of "had a different story". To top it off, Tobi said he collected the sharingan at the Uchiha massacre. Danzo did not get anything tangible from that night.
The eye is drawn distinctly different than both Danzo's regular eye as well as both of his arms in the panel you posted. There's emphasis on it. When Ao was stating that, he meant the chakra in his arm was different (due to the sharingan of random Uchiha being in it) but paused a bit after noticing the color in one of his eyes- that alone was Shisui's.
Shisui's arm went away with his body. Assuming Itachi and/or the Uchiha Police Force destroyed it so that no one would go hunting for it in search of his eyes.
did itachi speak to danzo before or after he took shusuis eye? i forget. mustve been before
After, the flashbacks were in chronological order.