Thanks, totally forgot about that section on page 18, lol
But I would read; heroes lose fatique, so all heroes, also KO heroes.
Would make sense, because you are just moving from one scene to another and during that time you can rest (eq losing fatique), but probably not wounds because that would take to long. ( a bit AD&D thinking; you won't rush to the next encounter being completly fatiqued and wounded.. )
A thought:, the DL starts with a fresh bunch of minions every quest/encounter, so I think it would off balance a quest if the heroes are fatiqued (because both my heroes were) and only can stand up. With the big fat goblin that would mean for me; only standing up, maybe heal some and BAM there is the attack of full health minions from the DL…this would give the DL in every second encounter a big advantage.
In my humble option it would be more fair that they can start full health and none fatique, in line (and spirit ) of doing a single quest; because I think every quest is balanced with the idea that both heroes and minions start with full health.