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All we really know is that they broke off around the time that the first war would've been, and it was known that they were aiming for a ritual. It's quite possible that they had been in talks with the Makiri and Tohsaka about the war, but broke it off before the grail's actual creation rather than after like in regular continuity.
Following this train of thought, there's a chance that all sides still met back then (including Zelretch), prior to the Einzbern isolating themselves. After their isolation, they may have still created the grail itself, but had no way of going about performing the ritual since they had neither the land nor means of providing mana. Flash foward and they feel that they found a way using Irisviel and Ilya, but they were stopped.
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