New information about the setting of Final Fantasy 7 Remake has confirmed that Cid and Vincent are still where they were in the original game, and haven't been displaced by the changing timeline. FF7 Remake was originally believed to be part of a straight remake of FF7, but the ending of the game revealed that the story is going in a new direction.
FF7 Remake ends with Cloud and his friends defeating the literal arbiters of fate, allowing them to live a new life that doesn't follow the events of FF7. There have already been several changes made to the existing Final Fantasy 7 timeline. It seems that Aerith and Sephiroth are aware of the events of FF7 and using this knowledge for their own purposes in FF7 Remake. Several of the characters who died in FF7 are still alive, like Biggs and (possibly) Wedge. It's also heavily implied that Jessie and Zack are still alive.
The upcoming PS5 version of FF7 Remake is called Intergrade and it will include the FF7R Episode INTERmission DLC. This adds two new chapters, which star Yuffie from FF7, as she infiltrates the city of Midgar during the events of FF7 Remake. Tetsuya Nomura was recently asked by the PlayStation Blog about why Yuffie was chosen to star in the DLC, instead of Cid or Vincent. Nomura confirmed that they are still in their original places from FF7, which means they weren't suitable to star in INTERmission. This means that fans now have an idea of what these characters are up to during the events of FF7 Remake, as some speculated that the changing timeline could have changed their place in the storyline.
FF7 Remake: Cid Is Still In Rocket Town
Cid appeared in the Japan-exclusive FF7 spin-off Before Crisis, where it was explained that the original version of Avalanche was responsible for ruining the rocket's launch. He spent the following years waiting for the Shinra Corporation to restart the space program but to no avail. The developers of FF7 Remake had the chance to include Cid in a cameo, as he could have shown up at the Shinra Headquarters to petition President Shinra directly about the space program, but he doesn't appear in the game. This means Cid is likely still in Rocket Town during the events of FF7 Remake.
FF7 Remake: Vincent Is Asleep
In FF7, Cloud finds Vincent sleeping in a coffin in the Shinra Mansion. He's convinced to join the party after learning about Sephiroth. Vincent showed up in both of the FF7 spin-offs, as Zack finds his coffin in Crisis Core, and Vincent briefly aids the Turks in Before Crisis, but doesn't leave the Shinra Mansion. It would have been a lot harder for the developers of FF7 Remake to include Vincent in the DLC, especially if the intention is for him to meet Cloud in the same way in a later game. Nomura has now confirmed that Vincent is still sleeping, so he's unlikely to appear until Cloud visits Nibelheim in a later FF7 Remake game.
Final Fantasy VII Remake Intergrade and FF7R Episode INTERmission will be available for PS5 on June 10, 2021.
Source: PlayStation Blog