1. Because of Sharagwyn poor initiative roll she technically start moving after enemy, while other PCs move before them
2. Jim did not announce moving
3. @Tasrek you instructed me that you would like to remain in the front line, but frontline with Shara nad Jim is still there
4. @Dramasailor also instructed me "staying with Shara and Ha'aroo."
I had to decide between A. Everyone but Shara and Jim backs up, leaving them or B. pacan and Ha'aroo stay to protect Shara who were too slow to react and Jim who decided not to back up. I feel that I did the right decision, I'm sorry if I did not.
P.S. We still play encounter RAW: every creature do their turn in initiative order. I only ask you to describe your turn before waiting for other PCs even if their initiative is before yours. And I am accepting conditional instructions like "my PC moves if X happened by my PC turn in initiative order.
This battle encounter is actually designed to demonstrate how this is going to work in future, so I'm thankful for you to ask questions and share confusion if any.