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I did go through dialogue before fighting

Jared,

Thanks for replying. I did go through the dialogue before starting the fight. That's what's strange.

After I completed the 4th level of Balduran's ship and went back to the village I stopped to talk the gatekeeper and he said, "Hail might heroes! My duty here is done! The gates stay open forever more!" That would seem to indicate I've killed all the werewolves. However, when Kaishas Gan asks if I ...