I think the Mughals would be in a better position tbh because they’d have saved a lot of money, and Aurangzebs successor would probably allow Maratha/ southern independence and return to consolidation of the Deccan itself. Further, you’ve definitely butterflied away the chain of incredibly incompetent emperors that followed him, and literally anyone and I mean anyone would have been better than Jahandar Shah and Farrukhsiyar. Also, seeing as whichever of his sons takes the throne, they’re going to have the energy that comes with youth (Azam shah is 37, and Kam Baksh is 23) it makes me think they’ll be much more able to deal with the empires problems than Bahadur Shah was when he came to the throne, already aged and elderly.
Actually I doubt whether there will be a succession war of any sort- Kam Baksh is only twenty three and all the other brothers are dead or in prison apart from Azam Shah. Then again the relationship between the brothers was apparently tense and Kam Baksh may resent his brothers imperiousness and decide to launch a bid for a throne despite his lack of experience and if his inexperience convinces him of the need to listen to enough astute politicians, there’s a good chance he could bring together the many groups with a bone to pick against the empire and solidify it.
Even if nothing changes concerning the worsening state political culture, I’d imagine Golconda stays Mughal out of sheer inertia- Delhi has the deepest pockets and those diamond mines are too good to let slip.
There’s a decent chance the Khalsa doesn’t even form ittl, it really completely depends on the ten years between aurangzebs death and 1699- you can’t really be fighting to depose the tyrant who killed your father if he’s already dead, and the new guy is likely to be nowhere near as religiously motivated as Aurangzeb was.