Here’s how I would do it and why. It’s the same way the big dog shops do it.
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Strip all the paint/coating about 2’ up from the bottom of the panel and see where the rust ends.
Take the patch panel and cut a straight horizontal line at the point measured on the car.
Take machinist blue and paint the rotted panel at the place where the rust ends.
Fit the replacement panel. Using the cut edge on that panel scribe a line on the car through the machinist blue. A regular Sharpie is too thick. Cut the rotted panel at that line.
You can join the two while you tack it with a variety of methods. Your choice. I use either Cleecos or copper backing clamps.
The they do it like this as it reduces the heat input into the panel because the straight line weld is shorter. When you weld on a poly curve patch like you’ve shown you’re putting more heat into it and the welds are closer together which further promotes distortion. Using a straight line it’s easier and more precise than trying to cut and fit a compound curve.
By using a stamped replacement panel you keep the contour lines in the area where you’ve replaced metal. Otherwise you need to shape a contour into the patch with some sort of shaping, English wheel, hammer/dolly whatever.
When your done welding flap sand the bead smooth on both sides, epoxy prime, mud, block and paint.