Yeah, when I played through this campaign as a Knight before, Nicolas also kept chasing me around when I was trying to collect the artifacts. The AI behaves strangely. As for Nicolas, he didn't even leave his castle territory when I played as a Knight, but as a Barbarian, he wanders around the Dungeon.
In the first game, I didn't even have to take his castles – he ran into me in the Dungeon after I collected the artifacts and got the Phoenixes:smile16: (on Recruit difficulty).