User blog comment:IamJakuhoRaikoben/Chapter 497: The Winter Mage, Review./@comment-24546844-20160810202610/@comment-7418318-20160810210008

The reason why everyone in "Magnolia" is fine is twofold. 1) there is no one in Magnolia, since it was evacuated and 2) after Universe One the guild-hall is no longer in Magnolia... if there even is a Magnolia anymore. We know the cathedral is next to the royal castle Mecruius somewhere out in the countryside.

Why the FT members and hangers on aren't mumified husks though is a good question. Maybe Ajeel is happy and want to play around, or he's pissed off over his previous defeat and doesn't want to give them such a quick death.

Or maybe he can't (or isn't good at) selectively control who's killed and who isn't, so he's not using that ability to avoid killing too many of their own troops.