Yes, it's just as the title describes.

Close-up of Lord Karavox stuck in a city I took from him. We're at war and I'd been trying to find him forever. He had units out and about, but only one more city that I didn't know about, which I'd taken, without him in it. I've been wondering where the hell he is for the longest time, when suddenly....
DUN DUN DUN.
I realize I've literally captured Lord Karavox without meaning to. Here I am, thinking to myself, "Oh, God, FINALLY I can kill him." So, I train a 'Rusher' (Was getting lazy with Designed Unit Names,) and try to move it to kill him. Now, I full-and-well expected a pop-up... Just not the pop-up that I received...
"Only Champions and Sovereigns may visit Notable Locations." A-wha?
I find this rather hilarious, that he seems to have barricaded himself within the Ruins of Gandra sitting in the middle of his former city. I figure, ah, what the hell, I'll just move my Sov in, clear the Ruin, and kill the punk.
Again, full well expecting a pop-up, I get...
"Something in the back of your mind tells you to turn around. (Notable Location Level Required, 4. Your level, 3." (Or whatever it reads verbatim.)
My jaw dropped. I even tried using the actual 'Attack' command. Nothing works. He's literally invincible until I clear those ruins... Something ought'a be done about that...
Edit: I have a save-game if you'd like it, and I'd be happy to snag Debug.err or DxDiags for you as well. I also have a more zoomed out screen, but I doubt that'd help.