Not sure if this is meant to happen, but as we walked down into the NPC settlement on the island at the top of the map our pets (tiger and wolf) got into a fight with the NPC ‘crew’.
We didn’t see who started it but literally had to leave so they didn’t get killed.
I had this happen with my Thrall. If you set the Thrall to passive or non-aggressive it seems to be fine after that. This is probably a bug in the AI behavior
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The merchants can’t be killed, so I just look at it as a good source of essence for temples. 
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