Added 2 minutes later
Yes, it's already widely "known" that Lu is an alchemist. There's no point in simply executing her; she has lost her ND (presumably, "non-disclosure" or "non-aggression"). So, consider it as her being exiled from the city.
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Yes, it's already widely "known" that Lu is an alchemist. There's no point in simply executing her; she has lost her ND (presumably, "non-disclosure" or "non-aggression"). So, consider it as her being exiled from the city.