V: Never should you pursue those who are not our true enemies without the
leave of the Gods of Battle. This includes those who hunt you as an
individual, for whatever reason or cause they choose to embrace. If pursued
by those who so dispute your beliefs, and if you are unable to avoid them,
make a stand and defend those beliefs, but do not draw the Village into your
personal battles.

The way I read it, it looks a lot more like, you don't chase someone from Open Sea to anywhere. You beat them up and try to make them run away and kill them if they don't. If you are forced to retreat, you probably don't run to the village since that would potentially "draw the Village into your personal battles". At the very least you don't get other villagers involved if at all possible.

I don't think my villagers have been played that way, but then I can't think of a villager I played that had personal enemies to really worry about... They had so many real enemies, there wasn't a need to go after personal conflicts.