Here is the step by step:
- Go to the Evergreen Area to meet Master Zhen and go through the entire dialogues until you can visit the Shrine
- You can see there is a Minecraft Portal look-a-like at the Shrine. Click that and begin the Spirit Hunting Minigame
- Pay attention to the Minigame Tutorial as well as the state of the Portal ( Silent, Wavy or Glowing Red )
- Only play the Minigame when the Portal is Glowing Red in order to actually progress Master Zhen's Questline. If it's either Silent or Wavy, just visit the Shrine again the next day.
- After playing multiple Minigames, eventually you get to meet a blue haired demoness called Nyxara, who will tempt you to release her from the Portal
- Reject her temptations and talk to Master Zhen to get the Living Weapon Trait activated.