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I'm writing to those (and especially to myself), who are experiencing a glitch with the "Wrath of Shalassa" quest (capturing villages and rebuilding cities). You need to let the incoming Necropolis hero capture some castle (in my case, I let him capture three and then retake them). The quest will then be completed. Damn, it's the latest version of the game, and the incompetent developers still haven't fixed this bug after all these years!