The faction hits do not seem to effect the dwarven guards in Butcher Block, but nearly all othr dwaves except the female dwarf NPC at the two huts closest to the G fay zone.
The faction hit is on Kaladim CITIZENS meaning most all dwarves...Kaladim residents would be the dwarves in BB this is all dwarves...but he is tough at times...I kill him several times then all the sudden he resists everything and I end up dieing so be careful with him and have gate handy