Having trouble with Watcher's Keep on LoB/SCS

I'm using a custom party, dwarven defender, Inquisitor, fighter/druid, fighter/thief, cleric/illusionist, necromancer. I've had little issue so far (I've done every side quest except some of the liches and as far as main quest goes I just got out of the underdark). I'm having trouble with the maze level, I took the quest to kill the other demon but I can't seem to kill him no matter what I do. Its the fears that are the issue. I've tried every buff/potion they all get wiped out. I tried the chain contingency set for resist fear on my mages, but it only holds up a few seconds (I can see this strategy working on anything other than LoB). Anyone have suggestions?
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Also the sword Dragonslayer, to protect at least 1 guy.
I found resist fear to be not that great as you also found, the problem is it doesn't make you immune, just sets your morale to max which rapidly gets eroded by fear abilities, meaning sooner or later, usually sooner, you're still fleeing whilst being mauled to death.
If it's the room i think you are talking about then pre-buffing spells is not an option due to anti-magic room, although you should be able to pre-buff with potions as long as you use them from the backpack and not from the quick item slots. Just remember that the main demon will drop dispel magic right away, so you will need to factor that into the tactics.
If it was me i would equip Peridan on the F/T, pre-buff potions with the 2 mages and spell immunity as their 1st spell in the room to prevent them being feared and dispelled. Hope to hell everyone else makes their saving throws until after the dispel magic has landed, then Chaotic Commands from the F/D to make 4th character immune. Round 2 is CC from F/D and C/I to make the last 2 immune.
Unsure how many demons can use dispel magic with SCS, it may take some trial and error to find the ones who can and then you need to see if you can focus damage on them fast enough to drop them before you have lost control of too many characters. Unless you are ludicrous level and have Deva/Planetar i don't think any summons are going to matter, Mordy Swords perhaps but i don't think on LoB they will dish out enough damage to be worth using, animate dead is unlikely to produce enough either.
Kinda depends on your levels though, HLA's will make it much easier obviously. It's one of the toughest fights IMO due to the inability to pre-buff.
Basically trying to hide.
Let them come to you, you might lose one or two to the fear but as long as you have a couple of fighters still functioning, it's manageable. Also, pretty sure things like the "golem book" work OK for a summons in there, if I'm remembering correctly. So there's the genii bottle as well as the staff that summons fire elementals, worth a try at least.
That or the thief darts forward and disarms the trap which is doable. I keep a set of good leather armour on me for instances where my fighter/thief needs to deal with traps and then fight because you can't swap around during a fight.
I think the room is bugged too because sometimes a cutscene plays and sometimes it doesn't when the cutscene plays sometimes the whole room doesn't aggro right away making it slightly easier
I'm so bad at remembering anything from a fight, especially a difficult one.
Moment it's finally over, I tend to immediately put the horror of it out of mind......until next time and then I sit there thinking "how on earth did I manage to get past this lot last time".
Probably why I can keep on playing the games after all this time.