There are two distinct possibilities here, one is conjectural and based on claims; the other is far simpler and based on evidence.
The simple version? Dustin Stevens was a mortal who took a name from a history book, and concocted a wild story of his ascension to godhood that a good many believed, for good or ill. For all his claims, when finally encountered he was a normal mortal; not a god; not an nth generation Kindred; not an arch-mage.
Version Two? Okay. This started with Loki, God of Trickery having a vision. The vision was of a world overrun by foul creatures called SoulEaters. They would rise from the Earth and consume everything. Out of the goodness of his heart, he decided this could not be allowed. He would build a fortress against these beasts, and forge an epic alliance against them. Some would survive and eventually reclaim what was theirs through force of arms. This task would be easier if certain of his colleagues hadn't vowed to kill him over some long forgotten trick. He would have to move carefully.
His search for a site for his goal led him to newly conquered Britain, and a place of great power where the Anglesea/Chester/Mow Cop ley crossed the main Pennine ley. This would be where his fortress would be built. With his skills, it was simple to manipulate lesser minds into settling there, and raising a community that would attract the Vampires, Mages and Garou he would need for his plan. He started the ball rolling, and largely left the area to it for a thousand years.
Hoping to return to a completed project, he was disappointed to return to the area circa 1450 to find very little progress made. He marries Helena and extols her to greater efforts. An attempt to build a castle is foiled by local Werewolves. Requesting others to work things out with the Garou, he leaves the area again.
His next return was around 1900, as the community had exhausted themselves in a great fight against the Garou, breaking both factions. Furious, he wipes the slate clean for the area, allowing new Garou and Vampires to discover the region. This time he would supervise more closely. If the SoulEaters were to fall, there would have to be alliance rather than war. A new plan was hatched.
Moving to Edinburgh in 1923, Guy Foster surfaced and testified at the trial of a prominent Tremere, Marcus Fallon, and following Marcus' death, Foster took over his domain and library. He began laying a trail, requesting a string of books from Vienna based around spirit bindings and control. One of his works claims that the embrace itself is a transfer of blood and spirit, which is why embrace using vials of blood fail. Also, the spirit of the sire is diluted, resulting in a less powerful Vampire. He begins experimenting with this, claiming that by using a binding a powerful spirit to any blood, he can create powerful vampires that will exhibit abilities commensurate to the spirit used. By using Werewolf spirits and synthetic blood he creates a brood of kindred with powers of nature and elemental species as a deliberate affront to the Garou.
Through leaking information, old predictable Aloph finds out Foster's big plan he is to use the power of the leys to call his child, Fenris, to earth. In a great magical ritual, he will consume Scarab's strong synthetic blood and the spirit of Fenris. With this merging of power, he will be reborn as 1st generation vampire. Aloph buys all of this and runs to the locals with the information. Realising that his plan threatens them all, the Mages, Kindred and Garou ally and set out to stop him, showing that they can work together. Loki realises he himself must die to secure their pact. As a final act, he sends them all a letter:
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