Just met Marchon Options

[Golden Thief]

Basic install is all I have.
We meet Marchon and group and they join with us to battle.
We go into east room and have a battle. I'm not sure what happened but Coppersky yells there trying to kill us and he only turns hostle. I take my group away from him and his buddies kill him and we then clean out the level. When I talk to Marchon again all he says is there are more monsters to kill or clean out. Just wondering if this is a bug or do I have to clean out the next level before he says they are all gone.
Also the evil thief I am I failed at pickpocketing each one and one by one they turn hostile so even their buddies help kill them. Shouldn't they all turn hostle, maybe? Also did you mean for them to drop such nice weapons?