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He took the Crest of Valor, dismissed the hero Dess, then found him again in the tavern (if you search, you can find dismissed heroes; you can't buy them back on the same day). He bought him back in the tavern the next day (heroes don't lose their artifacts; only their troops disappear) and gave the Boots of Swiftness to Gunnar.
This didn't affect the outcome of the game at all. Personally, I didn't go to the northwest of the Dungeon at all; you don't even need to go there – it's a waste of time. If you hadn't placed an antimagic garrison... at the entrance to the Inferno lands. Even if there was a regular garrison instead of the antimagic one, and even if there were MORE troops there than in the antimagic garrison, you would have been even more surprised; the map could have been completed in 10-12 days instead of 23...