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If I convert a hero or an EC in battle, but there are other characters in battle to continue, does the converted character have to leave immediately?

This is what the REG says, but I didn't know if that was "old wording" or if that is the mandatory default.

Instant Abilities > Convert > Special Conditions

•      A converted character in an illegal situation must withdraw to its owners territory (e.g., a Hero blocking a rescue attempt resulting from an Evil Character being converted).

I know that unaligned characters can't band, and that the converted character does not affect the battle, but my question revolves around this scenario:

1. I RA with two banded heroes.
2. Opponent blocks with two banded ECs who now have initiative.
3. Opponent plays Evil Spirit to convert one of the RA heroes to an EC for remainder of turn.
4. I have initiative and play an enhancement to discard one of ECs.
5. My opponent is now losing, but has no more enhancements.
6. My opponent wants to play Grapes of Wrath to discard my converted hero, and shuffle the rest.

Grapes would only work if the converted hero was still in battle. So, based on the REG, the converted hero must return immediately to territory, thus not a valid target for Grapes.

My question would be whether that character should still be in battle, just not affecting the battle. I see this as being similar to the */0 scenario, where the character is not discarded during battle, but I may be wrong.

I just thought I'd ask.