I have yet to have a Quest not finish properly. Damsel, Knight or Rats...
Once returned to your FIRST starter Town, I have then been moving them to my other towns as they have fighting capabilities, although mostly weak, but when garrisoned in a Town, they can hold their own pretty well.
P.S. A possible BUG I have noticed, I think, is that the fancy Compass you get as a reward, does not ever show up in your Inventory, unlike the healing Plant, Books or Potions...
I would hate to get lost, and think I have a compass... LOL