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Does Forest Paths let you ignore Shrouded Woods when the enemy ruler picks your destination?

No, not fully. The enemy ruler still chooses your destination. If you spend the favor on Forest Paths and they pick a site with a Beast card, you spend no Supply, because that overrides Shrouded Woods' travel cost. If they pick a site without a Beast card, the travel fails, and with under 2 Supply the ruler can force that.

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