Chapter 1: Blood and Lightning

I will say you can use it outside of battle too, but it's a short range teleport (so the top of the tower for example would be too high) but using it outside of battle means you can't use it until the next battle is over. Inside of battle, it is a teleport, meaning you avoid opportunity attacks and don't need to roll to disengage. It's basically like disengaging and getting a guaranteed 20 on the d20.
It says "hit with an attack" not "take damage", so i interpret that to mean they had to roll an attack roll and land, and thus ongoing damage does not take your momentum. I think the time you got hit by the acid spray was one of the attacks cancelled by raphel's spell. If it was the previous round and you were hit by LM1, you didn't get hit as the spell actually failed.

One of the lizardman savages takes a heavy beating and is staggered. It reals back, blood dripping down its teeth from internal wounds. It looks at the other and says something in a language only understood by Edgar due to his relationship to the Three. "Go! Protect the ritual!" It says, but to all but Edgar it sounds like some reptilian language.

Seeing the rogue approach and how his armor isn't as thick as the other two, it goes for him in hopes of one last blow before he is slain. The other attempts to get away. However, the adventurer won't let him go. The lizardman decides to take the painful route and run away knowing it could be struck multiple times in doing so.

Hrafe's mighty blow single handedly lays the fleeing lizardman low

Makasi's blow nicks the remaining lizardman savage, but doesn't land a solid enough blow to kill it. However, this distracts it enough that it leans into Hrafe's blade, striking it down with a heavy thump.

The last lizardman Magician gives a frustrated grunt and runs up the stairs and disappears through the ceiling, presumably to the top of the tower where the ritual is taking place. Filled with adrenaline and a drive to save the wizards up too, you all run up the stairs and follow it. The energy from the battle still active.When you reach the top, you see 4 humans i robes, a human welding an axe standing over them, and three lizardman magicians (one of which from some minor injuries seems to be the one from before). A magic circle has been drawn around the 4 humans, and two of the lizardmen are changing in the same reptilian language from before.

The axe wielding human looks at you and says, "Oh look, the adventurers the archmage sent. Sadly you could not save the commander, and you won't be able to save these people either." You see off to the side is thr body of commander Ameliefor. A large pool of blood underneath her makes you notice the blood on the axe the man is wielding. "Her second in command fought valiantly, but only for an ant that he is. Now come, meet your fate at the hands of Zvegdar! It is only a matter of time before we all bow to the Three!"

Sensing your conflicted connection to the Great Gold Wyrm, Zvegdar hones in on Makasi and attacks her after running up to her