The Pack came to the conclusion that Headmistress Kalvdiya was not abusing her children, but rather that Felix was invoking some evil power through his tin locket. Shakti noticed evidence in his room that he may have killed Zaharia by throwing him from the window, and the Pack found Felix alone in the orphanage's dark attic. As he carved a wooden doll with a large kitchen knife, Ghalwin tried to engage with him, but it slowly became apparent that another being was speaking through the boy.
The window's light blackened, the trapdoor shut, and a Shadow Demon emerged from Felix's body as he fell unconscious. In pure darkness, only Shakti could see the demon, and she placed a moonbeam wherever the fiend skittered along the walls and ceiling. The radiance clearly burned the creature, releasing acrid smoke, but also damaged the roof's structural integrity. The shadow demon sliced through Jarmo with long smoky claws, and the goliath was only able to save himself by invoking his stoneskin for the fourth time.
Desperate to track down the fiend, Ghalwin turned to the Eye of Darkness and invoked her power. This granted him temporary darkvision, and he got Jarmo to fling him as he did when they were but young boys. The paladin smited the demon mid-air in a Certified Anime Moment, but the creature somehow lived, and Ghalwin was fried by his sister's moonbeam as he hit the ground. The demon dropped from the ceiling and drained Shakti's life before repossessing its symbiote, Felix. Ghalwin healed her while Jarmo attacked but missed wildly, blowing a hole through the attic floor.
Felix stabbed Ireena before being tackled by the group, and the Demon then slipped into the bag of holding. It returned to its locket, and was able to possess the last person who touched it, Ghalwin. The possessed paladin slashed Ireena again before making a break for it, but Shakti and Jarmo caught up with him and knocked him out; the demon remained apparently trapped in the locket. Ireena ran Felix downstairs to the headmistress as Shakti patched up her unconscious brother. They took a beat before Jarmo destroyed the locket, and Ghalwin smote the fiend as it re-emerged.
Killing the demon removed Milivoj's curse, and the Pack revived him though one of the health potions on his bedside table. Over a short rest, they interviewed the gravedigger, who shamefully admitted his crime. Milivoj told the Pack that he had previously been approached by the coffin-maker Henrik van der Voort to steal Saint Andral's bones, but he had declined the offer. However, when he became sick and realized he would not be able to support the orphange, Milivoj grew desperate. He learned from the altar boy Yeska that the bones were beneath the church's altar, and plundered her tomb. He then attempted to trade them to Henrik for seventy gold pieces, but did not get the money before his illness overtook him.
As thanks for healing Milivoj and solving the mystery around Felix, Headmistress Klavdiya gave her last potion to the Pack, which she had acquired from Jeny Greenteeth. They decided that it was pressing to get the bones back as quickly as possible, and left to confront Henrik. They made their through the town square, where a large gallows was surrounded by numerous wooden stockades. Multiple men, women, and children were in the stocks, sporting plastered donkey heads and a variety of wounds. A group of guards lead by a massive man with a Devil-like right arm passed them, and they heard whispers of his name: Izek Strazni. The guards tore down posters about the Wolf's Head Jamboree, and replaced them with similar posters for an upcoming event, the Festival of the Blazing Sun.
The Pack kept their heads down and went to the Coffin Maker's Shop, which was boarded up. Ghalwin sensed six undead presences on the second floor and found it locked up. Henrik screamed at them to leave before refusing to answer the party's attempts at diplomacy, and a frustrated Ghalwin smashed open a window next to the side door. Shakti slithered through the window as a Wild Shaped snake and opened the barred door from the inside. After completing the B&E, they began to head upstairs, but Henrik emerged and pleaded with the Pack to not go further. He admitted that everything they said was true, and that he was being held captive in his own home.