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If I understand it correctly alternate universes (maybe not 'alternate') were always separate, like siblings, while alternate timelines branch off from a universe.

Based on my understanding, if something different happens in one timeline, it branches off into a new timeline (alternate) which will create a new (alternate) universe. So the multiverse is basically different timelines that branched off from the original timeline. I've been hearing a lot about "Sacred Timeline", so I would guess this would be the Earth-199999 or the MCU? I'm sure a lot of this is explained in the Loki series, I just need to wait a few more days before I can finally binge watch it.

I haven't watched any of the episode as I'm waiting for the series to complete before I binge watch this. It's very hard to avoid spoilers with all the memes and fan theories out there. I accidentally spoiled some of the episodes when I was trying to time the subtitles. But I am excited to watch this as the season comes to a close. For whatever plot twists that's waiting to unravel, all I can say is that it was Agatha all along.