Jesus Christ, Yes, they did found the KKK. Literally every founding member of the KKK was a Democrat ( All six were former members of the confederate army, to be precise), and the only reason why they are labeled as "right wing terrorists organizations" is because the people who ran them (Again, Democrats) were also the ones in charge, so they could just say "hey, it's republicans who are killing people, not us" and people would believe them. (You also had a KKK member found planned parenthood to, and I quote, "exterminate the black and Jew filth", just to turn around and accuse pro-lifers of being members of the KKK themselves to further demonize the only people actually willing to stop them.)
And no the party shift *was* only in the foreign policy, you can keep claiming to the contrary but unless you prove me wrong you're just going to keep looking like an idiot.