Not all of the characters in Knightmare were strictly aligned to either the Opposition or the Powers that Be.
The opportunists (e.g. tradesmen) looked after their own interests. Monks or dwarves showed little interest in dungeon power structures. Others, such as the witches, were defensive of their own kind.
Many neutral characters were not friendly with the Opposition. Some of them even loathed Lord Fear. But their natural suspicion and distrust created some tricky encounters for dungeoneers.