On TOS, I have been killing Orcs around framsburg while pledged to Dwarves, conquest is up to around 400 points, and I have started to notice wood elves spawning around the city. However, those 400 points are black, with no effect, it doesn't say it's going to allies, and checking other factions, none of them have any points in the square. So I'm thinking it's either a bug where it's not showing the stipped "only aids allies" conquest, or the NPCs are spawning when they're not supposed to.