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From reports coming out of D23 Japan, a video exclusive to the convention was shown about the development process/progress of Kingdom Hearts III.

During this video a screenshot of the Tangled world was shown with Rapunzel in the Kingdom of Corona. This suggests that we will be able to enter and possibly explore the actual city.

This picture also pictures NPCs in the background... which looks like it means no more empty worlds in Kingdom Hearts, which as been a criticism of the series for many years.

This is also supported by IGN Japan's article (translated by MysticDistance on twitter), which can be found here.

Source: Dlove

EDIT:

More images from the 'Making of' video have surfaced thanks to UrePia, showing Sora walking around Corona (including the many NPCs), as well as a first look at the 'Giantland' content in KH3 (which appears to be a Game & Watch style mini-game):

In celebration of D23 in Japan, IGN's Japanese branch has put out an article based on some of the new information announced.

Highlights include:
The highlights of this article are definitely the information for Rapunzel and how development of Kingdom Hearts III is going along, this rest of this information (especially the inclusion of something as unfamiliar as Mickey's Giantland) is quite interesting to know about.

Source: Mystic Distance on Twitter

As expected, a new KH3 trailer was released during the Kingdom Hearts event at D23. Check out the epic new trailer below:

In addition to that trailer, a shorter trailer previewing Utada's new song, “Don’t Think Twice”, was also released:

As the Kingdom Hearts event at D23 comes to a close, here is a recap of KH3 information that was revealed during the event:

-Monsters Inc. world has been officially confirmed (meaning those leaked images were in fact real)
-Marluxia and Vanitas are set to return
-Still scheduled to release in 2018
-KH3 will have a new Utada song named "Oath" in Japanese, “Don’t Think Twice” in English
-New clothes revealed for Mickey and Riku
-Summons return (confirmed ones include Ariel and Dream Eaters)

In addition to that, a trailer will be released soon, and will be posted once it is available online.

Source: @aibo_ac7

The first news to come out of the Kingdom Hearts event at D23 involves KH content to the mobile Final Fantasy game, Final Fantasy Record Keeper. Check out the trailer above. No word on whether this content will be available in the international version.