From the hill that the Manor sits on Cain could see that there was an enormous tent city in the empty fields on the far side of the manor, in what used to be an empty valley. That would explain a lot of the people. The Guild must have taken in even more refugees here than he did at the farm. If things are that bad in Skyview, Cain would have expected King James to contact him, but even the Puppet that Cain left as a defense minister in his place didn't mention anything out of the ordinary after the initial cleanup of the dungeons.
Sensing her location, Cain found that she was still 'alive' and well inside the castle, as was Lieutenant Gwen's clone, still disguised as a cute pet fox.
