Two sisters.

Well, I think you know how to fix it)). You can reduce his army by four times and continue the game.
We'll remove the Guard and add red Knights. For some reason, I initially thought he was a Knight).

So, do you periodically kill them, or do the Gnomes automatically restore them right away?

They don't restore them. But with the Dwarves, they immediately appear in the tavern after death. So, they definitely won't appear in your tavern.