Was Shattered Embrace released Dec 6 last year? Is it for Two worlds 1 or Two Worlds II and is it stand alone?

Just look on the steam page:
https://store.steampowered.com/app/578990/Two_Worlds_II_HD__Shattered_Embrace/

Yes, it was released on 06dec19. Yes it is for Two Worlds 2, and it can be a DLC or a stand-alone. It is not sold here.
It would be good if we could get one version with all the content, rather than velvet, epic, separate etc. But seeing as reality pump add in terrible drm, then added in micro transactions and the extra content appears very buggy, I would avoid for now.

I've searched and can't seem to find a non-steam version of the dlc to purchase and download!

There isn't one, yet. I assume a GOG version will come later, after they think the DRM isn't needed anymore.

That sure would be something to look forward to!

I'm not sure about this and i hate to rant about fucking TopWare in every thread they are associated with but i have no clue why GOG even allow them to be here.

Their history is full of shady shit like review manipulating, cripple games years after release through updates/expansion when customers have no chance of refund etc.
Not to mention the quality off their content has taken a deep dive over years and i didn't even like them to begin with.

If people still want to buy their products then i guess it's their right but be wary because TopWare has no qualms about screwing you over, i wouldn't be surprised if they hated their customers.

They added in microtransactions to a mainly singleplayer RPG YEARS after it launched. For a while they also removed in-game console commands so you couldn't just spawn in items you previously could, as far as i understand. After people complained they supposedly added the console commands back in. Not sure if they added them all back in or what. I can't remember any other dev pulling some bullshit like that before.

They dont own the game here - or ANY games - as had been noted before in their threads regarding Two Worlds games. Check the profile.