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no, you need to send monks, priests, and adepts to the right place (at the very top of the map), move the town there (this will be suggested as soon as Zephyr sends this trio where it should go and he himself approaches this place), and eliminate the demon army that appears after the town is moved (the demons have a considerable army). After that, Zephyr will be teleported and he will leave the game; the mission will be continued by Frida and Duncan, who need to destroy two demon towns and the enemy hero.
Added 1 minute ago
here's another thing: at the very beginning of the game, when the knight attacks Zephyr, you can't kill the adepts from his army; at least one must survive and switch to Zephyr's side.
Added 18 hours 25 minutes ago
I forgot, you also need to dig up the Tear of Ashi.
It's in the dungeon.