There is clearly only one option here -Kiri. Hear me out. There is no other village that offers the trifecta of advantages that Kiri does. Yes, Kiri does sound like it's more dangerous than some of the safer options, and it probably is more dangerous, but Vesvius won't punish questers without reason, and this is a GOTY format thing. Fear of the MC dying should not be a major input into character generation, because the GOTY format requires the MC to die anyway. It's going to happen, so we may as well accept that risk and simply move forward with the more important things. You live a life, die, and gain unlockable options for your next life based on what you did.
First, Opportunity Cost. This is a GOTY thing, so we're not going to start out with a cool bloodline. We'll get the option to have things like cool bloodlines and starting perks later, based on our actions in our playthroughs. Given that Kiri is hostile to bloodlines, or will become hostile to them, that means that we need to do Kiri now, while we don't have any special bloodlines that choosing Kiri would force us to ignore. We can do a life in Kiri to unlock some character generation options based on Kiri, and then move onto more bloodline-friendly villages later. Ice release, the Kaguya bloodline, boil release, lava release -Mist has some fantastic bloodlines.
Second, Opportunity for Advancement. Kiri's not just going to have one or two strong ninja desert. Almost literally all of Kiri's most powerful ninja are going to desert or be driven away. The bloodline users are going to be purged and the Swordsmen are going to desert one by one. Kiri offers a huge gap in the upper ranks that needs to be filled, and the MC can take advantage of that to rise through the power structure far more rapidly than in any other village, where he'll have to contend with all of their entrenched veterans.
Third, Shirtless Men. Kiri is the village with the highest number of shirtless, manly shinobi. If Zabuza and Kisame mean anything, then going shirtless when shit gets real is just a thing that happens in Kiri. This is excessively manly, and walking around with no shirt on would automatically make the MC better than he would be in any other village.
[X] Kirigakure, the Village Hidden in the Mist, located in the Land of Water.