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If I had to, I would probably rule that the instead takes precedence, and that phrase is clarifying text that should be ignored, but hopefully I won't ever have to...
Alright, I can accept that. Here's a question though. I block with Emp Augustus. Your NT heroes in Potter's Field return to your territory as PF offers no protection to its contents. Do they stay in territory or, because they are treated as discarded heroes, do they try to discard themselves only to end up back in PF?Emperor Augustus - All N.T. humans in set aside areas must return to owner's territories. All opponents with a N.T. human in territory must discard a card from hand without using it.
I would have thought "Treat them as discard heroes" was partly to get around duplicates in play/set-aside.