This is a messy quest. Below is some information. Surely, regardless of the choice of Istiana or Arzagos, you will encounter the same Quest.
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This is part of the storyline. Surely at the current stage the quest looks damp, because the game is at the early access stage of Steam. In the future, everything may change. During the game, you will often receive messages that the task has failed, progress has been achieved, or reset. So the game points you to a conspiracy that only grows over time. On the quest information page, you can see general data on the plot.
As far as I know, you cannot stop the plot in its infancy. I tried to track down and kill Istiana, but she is invulnerable and does not receive any damage. The only logical alternative is to just wait. As the conspiracy continues to grow, it will ultimately grow into war. Its size may differ from your social status, presence of allies, location, but in my case, a war began against the Western, Northern and Southern Empire. At this point, quest tasks will become active.
You will be ordered either to destroy all the enemies who declared war, or to find each commander and conclude a truce with him. The latter, unfortunately, can only be done on the battlefield. Choice is yours, but making peace is much cheaper and easier. The purpose of this guide is to make you understand that there is no way to stop the plot in its infancy today in the game! That is, the war must still begin.