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It becomes an uncommon weapon drop after that, and by the time of NG++ (Way of the Demon), I'm running across them every few levels.
One thing to note is that first one you get tends not to have any inheritable attributes, meaning that it's a little easier to customize to your liking without Soul Matching prowess.
Another thing to note is that while the Kusanagi is a nice sword, there are better, and you'll want to always keep your eyes open for something that might fit your playstyle better. After all, the Kusanagi's claim to fame is through Purifying Yokai Realms, which not everyone bothers with.
There are very, very few actual *rare* drops.
Its current claim to fame is a powerful mix of attributes on a divine version of it that appears on revenants, practically saturating the PS4 servers. Much like Red Demon armor. (Except the sword is actually distinctively good.)