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After you finish leveling up, walk past the Royal Guard who will then teleport you to General Van Handel. If you haven't finished leveling up, he won't let you pass.

After killing Nidhoggr's Revenge, you can walk past him to receive a Refine Protection Potion (no longer needed as the Refine Master uses deeds with a 100% success rate). This will complete "Optional: Royal Guard's Reward" from Chapter 1: A Bitter End.