I know what you mean. My first fight with the gith turned ugly. The first thing I did was cast a spell, which summoned cowled wizards to kill me. A peasant or two died in the battle, which summoned guards to kill me also. I won the battle, but my reputation had dropped to 3.
Anyway, I reloaded, and avoided the guards and dead peasants by fighting the gith in the graveyard district instead.
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