The Adventure Zone: Graduation Ep. 30: Take Your Firbolg to Work Day | Discussion Thread

Because heroes and villains being labeled as "Evil" basically means nothing except they can't professionally hero or villain. Nearly all the teachers at the school are "Evil", we're told that in the first episode and the students are specifically told not to ask their teachers about what happened to give the teachers an "Evil" label.

Also, none of the people who are okay working with a Demon Prince are really doing it because the system is broken. Calhain and the centaur don't explicitly say why they do, but it's likely about wanting power. The Thundermen are doing it because they see no other way to change things for Chaos but still save as many lives as possible. And Althea trusts the Thundermen and agrees that things need to change, which she apparently considers more important than the Demon Prince.

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