Should killing an entire bandit encampment register when I escape and return to Lord Radzig?

I recently completed Needle in a Haystack quest and was accepted into the bandit camp on the hills of Sasau. I was taken as prisoner and eventually rescued and told to escape and ignore my belongings. I decided against that and take my things out of Eriks chest and was now very well equipped. I had tried this multiple times, all having the same goal which was to kill the entire bandit camp to dull their numbers. I even tried fighting the guy who taught you sword fighting in the very beginning in Skalitz which resulted in him chasing me and not allowing me to fight back. I’m wondering why my killing all the bandits didn’t register in my storyline.

Plot armor. The same reason you can’t kill Runt on your first encounter. He never drops below 1HP.

When you go back to attack the camp, you find you only killed the night shift, and the patrols, and nature hikers, and people sleeping in, and visiting bath wenches, are now back and fully defending the camp.

Huh, I missed the cutscene because of some dude delivering food at my place, and suddenly I was in a fistfight with about 8 guys. So naturaly I drew my sword and slaughtered the whole camp.
Uhm, I probably shouldn’t have done that I recon?

Ohh okay thank you. Clears it up a ton.

Game crashed when I went through the gate