I think it should be before KotOR 1, maybe during the Mandalorian Wars.
Or before that, during the Exar Kun war.
There is a lot of potential in there, I think.
KotOR just brushed on the surface of the Mandalorian Wars, and the Exar Kun war.
It would be nice to play as a Mandalorian for a change, maybe one of the survivors of Malachor V, or something like that.
Or as a Jedi, that sides with the Mandalorians, or some other strange plot-twist, that would fit into the theme of Star Wars.