For some reason I can't talk to Lady Shizuka.. ANYWHERE, I've try switching channels,towns,channels this all started happening after I got to Kaga. Anyone have an idea what this is about? I need to storage some items but is unable to because of this strange bug.

I assume you have just barely killed the tentacle boss in central forest place thingy? If so then the story quest has placed shizuka and yoshitsune "under arrest" if you're at that point in the story. To store items just talk to Amaterasu and she'll have the option temporarily available for you. Complete the main quest to regain access to Shizuka again.

But if Shizuka is physically there but you can't talk to her, then I don't exactly know what your issue is.

She is physically there and I can't talk to her, however I tried to donate enough friendship items for her to get a ? mark and I talked to her and completed the quest then went back to not being able to click her at all. I'm in Kaga storyline wise.