In a tavern safe house in the Royal Capital, Otto, Garfiel, and Rem recover from a near-fatal encounter with Reinhard, whom they barely bypassed with the help of Wilhelm. Joined by Old Man Rom—whom Wilhelm recognizes as the former Demi-Human Alliance leader Valga Cromwell—they analyze their dire situation. The enemy has compromised the Royal Castle and taken the Dragonstone. Wilhelm explains that after Duchess Crusch went to Miklotov McMahon’s estate alone, Bordeaux Zellgef refused to help him, and soldiers chased him. Recognizing that the enemy now controls the "Sword Saint" Reinhard and that Miklotov is dead, Otto argues they must prioritize fleeing the capital. He notes that trying to rescue Emilia, Ram, or Felt from the castle right now is a losing battle. Though Garfiel and Rem are distraught, Rom and Wilhelm agree to the retreat. Wilhelm reassures Rem that the capable Crusch and Beatrice are with Subaru. Otto declares their withdrawal is a setup for a future victory. Meanwhile, at the Six Tongues' hideout, Russell Fellow and the defector White Sheep explain to Subaru and Beatrice that Capella, the Sin Archbishop of Lust, has targeted the kingdom for thirty years. Russell reveals they had to eliminate seven Capella duplicates, a distraction that allowed her "Beloved Children" faction to seize the castle. After Subaru is healed of his burns, the hostile Black Dog brings concealment robes provided by Roswaal. Russell then reveals they must immediately abandon the base and escape the Royal Capital. Subaru is horrified at the prospect of leaving Emilia and his separated companions behind. However, Russell and White Sheep argue that the candidates' lives are safe for now, whereas staying means certain death. Yielding to the grim reality, Subaru resolves to escape the capital so he can eventually return to save Emilia and the others.
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