a question on the unstable rule and challenges

[Fluplar5]

Hello fellow druchii

in about the unstable rule in challenges. When fighting a challenge. for example a dread Lord versus Heinrich kemmler if I beat him in a combat by the time all initiative steps are over would he still suffer ones from the unstable special rule or would it go into the second round?

[Dalamar]

I'm not sure if I understand the question.

Unstable rule has nothing to do with challenges.

If you're in challenge with Kemmler and win, his unit crumbles by the difference in CR but he doesn't take extra wounds.
If he's the last one standing, or you win combat by enough to crumble the unit around him, he takes the excess wounds.

Characters always take the wounds from instability last, challenge or no challenge.