Twilight Sparkle does not appear in Generation 5 (G5) of the My Little Pony franchise, as it features a new cast of characters and a different setting. The fate of Twilight Sparkle and the other characters from Generation 4 (G4) is not directly addressed in G5.
In the transition from Generation 4 to Generation 5 of the My Little Pony series, the creators decided to introduce a completely new storyline with fresh characters, leaving the adventures of Twilight Sparkle and her friends as a cherished part of the previous generation. G5 is set in a time far removed from the events of G4, in a world where magic has mysteriously disappeared and the three pony kinds – Earth ponies, Pegasi, and Unicorns – live apart from one another in distrust.
The new narrative focuses on an Earth pony named Sunny Starscout, who dreams of bringing magic back and reuniting the divided pony kinds. Throughout the new series, there are subtle nods and Easter eggs that reference the previous generation, but the specifics of what happened to Twilight Sparkle and her friends are left to the imagination of the audience. This allows fans to create their own theories and stories about the legacy of the characters from G4, while G5 builds its own unique lore and character arcs.