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In Chapter 5, do I still place the Fore-Dweller via Special Event C when 'Something is Watching' finishes?

Yes. Chapter 5 only sends you to verse 13, which is a known error; you should also resolve Special Event C, which places the Fore-Dweller. Players report the 2.0 status sheet fixes this by telling you to resolve Special Event C when the last Something is Watching box is ticked. The timing is flexible; resolving it soon after is fine.

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