Yeah I have a similar Deorcnysse oddities (?) in my current game:
1) I conquered it with a single Scout unit, who slipped past the monster mobs surrounding it in the forest. There was ZERO militia in the city, so it was occupied without a fight;
2) It was a level 14 village. Will it grow to a city of some sort when it hits level 15? I'm not sure, I have not reached that point yet;
3) It has no garrison militia while under my control either (maybe it will grow some when it finally goes up a level?);
4) I had the same turn end bug as described by dwatson3 above, and solved it in the same manner;
5) My faction Power shot through the roof after I took it. All the other known powers in the game have less than half my power and are falling over themselves in a rush to offer me tribute. I've been assuming this is not a bug but a feature? and ...
6) How do you pronounce "Deorcnysse" anyways?