
Yewstance |
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If something instructs you to add a monster to a deck; it still occurs unless the Defensive Stance overrules it (which it doesn't; that's only from monsters that came from the siege deck originally).
So yes, you can have monsters - via the effect of cards like Burning Child or Corrupted Staff or Dance of the Dead - put into location decks even in siege scenarios, as rare as it is. It's actually beneficial for the players, since they might be banished in place of boons later on.
Remember that the siege deck is not a location, and you generally won't be adding anything to it.
As for your last question, I'm not entirely certain... I'd be tempted to say you DO banish from the location deck, because that sounds like a part of 'resolving the encounter' to me, and I'd rule that the game doesn't completely end until a player has finished their encounter.

Hawkmoon269 |
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You would still have to banish the top card of the location deck.
If the result of your check to defeat a bane exceeds its difficulty by 10 or more, banish the top card of your location deck.
That happens during a step in the middle of the encounter. The card in the siege deck won't be declared defeated until the end of the encounter, at which pointed it would be banished and then the siege deck would be empty.