If I'm not mistaken, morale doesn't decrease there because both races belong to the "evil" faction. It's been a while since I played, so I don't remember exactly, but you can also upgrade the tactics of, say, a thief if needed. Part 2 (and 1 and others) and the "spirit" are a single story, a connection between these worlds that is well-written and thought out; all these parts have a common beginning. P.S. I won't write about the atmosphere, or the questions will start again))) P.P.S. If something is still unclear, maybe you should play the previous parts or read the history, or I don't know... we're not in kindergarten, and I'm not a teacher who answers children's questions.