I'm currently short on time and in a rather apathetic and irritable state, which, as practice has shown, doesn't go well with managing things.
If (when) I continue, I'll have to review the entire mechanics. I'll completely remove critical failures, and I'll likely simplify the stats and adjust them to certain standards so that there isn't too much difference and it doesn't lead to tedious situations.
I'm just too tired to consider this battle. It wasn't even interesting, and due to the critical failures, it was too absurd. The only thing I'll say is that the plan to lure out the goblins complicated the quest several times over. It was supposed to be that you would explore the cave and fight small groups, but instead, I let the goblins fully prepare while you were sitting near the lair and grilling kebabs. They were also supposed to buff themselves with shamans during the battle.

In short, the result: you can clear the area near the cave, rescue Gaia (missing one eye) from the goblins; let Locken decide what to do with Lester and Goblin1; Gulveig is safe; Veritta is missing an arm. Asterion is gone – the nemesis didn't find a reason to revive him. Upon returning to the village, you won't be able to find either Gaia's nemesis or Archer1. You can return to Lungwort.
Regarding the GM's character – she was supposed to be the teacher of 8 elements in this city. She learned about Gulveig through Iwein, who was interested in the guild regarding the organization of Shanaz (I embellished the rescue moment after the battle, but decided that it deserved to happen). So, that's it, and we'll see what happens there.
Added 3 minutes ago
Oh, yes, and the last thing – if you accept the villagers' offer in the village, they wouldn't agree to help the nemesis, and they could potentially help with the mission (although they still wouldn't go inside the cave).