I thought it was design that way. iirc townhall missions wouldn't advance me past 70 rep. Anything above was from regular missions and i think maybe from letting the knight live.
I kept one alive from lvl 3-8 with a tanky warrior, but once i started hitting enemies with aoe attacks and environmental damage it just became too laborious. Cleric could keep one topped up on HP but probably not worth the effort.
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