Cutter -> my guys were literally level 3, and the highest enemy is level 8 or something. Sleep does nothing, plus the defenders dying = lose the quest, and they die like immediately. It seems to be scripted that way though, it may almost be a bug that you can kill as many of the enemies as I am killing now, but of course more just keep spawning in. Attrition wise I am 95% convinced now you are supposed to lose that battle and fail that particular quest. Losing that battle and continuing on seems like the only choice? Not sure yet. Plenty of dialogue post-loss indicates the battle is maybe unwinnable, or at least a valid path for the game to progress into.
So far the companions are... less than optimal. I am thinking about redoing my character completely, tried him as a Skald Battle Singer at first, but that got changed to Tower Shield Fighter, but unless I've missed some obvious loot pickups, even 30 AC on that fighter is pointless so far vs the demons. I am curious if I should just go all offense and AoE, a lot of trash enemies in every area it seems like, and so far nothing can last tanking at all. Probably why the default setting is weaker enemy crits and weaker enemy hp/damage. The game started out great, now I'm just getting pissed off, but of course I've been playing on and off all day, definitely making poorer decisions now. Time to go get some exercise or something.