After your party defeats Murdaw's Dreamworld aspect, thus weakening him and saving the King and Queen of Somnia from his curse, your party returns to Real World!Somnia to receive a promised hero's welcome...only to instead be harassed, insulted and outright threatened by the palace guards over your Nice Job Breaking It, Hero moment during your last visit. Just when it seems like you're facing certain imprisonment (or worse) for your "crimes", the King bursts in, pardons you for your impersonation stunt, and gives the guards an epic tonguelashing, prompting them to give you a meek apology.
During the Gallows Moor event, you get captured for real and are locked up without the jailer's key. Then everyone you helped earlier shows up to rescue you, and defeat the guards—including the guy who defeated you earlier.
In the Dread Realm, two wizards come together to bring the Final Boss's floating castle down to earth. Their magic attack levels the mountain and nearly does your work for you.