Raellus:
I think the consensus is to remain in place and try to take a long rest (combat with the Mindflayer and its thralls means that you can't resume the long rest you started earlier). Ulfgar is going to magically block the elevated entrance and a guard or two will be placed at the lower entrance. Is this correct?
The link you posted when I queried this earlier says that a rest needs to be interrupted by at least an hour of strenuous activity (fighting is specifically mentioned as being one of said strenuous activities) before it 'resets' and you have to start again from scratch. Are you ruling that the episode with the Mindflayer and the subsequent poking about at the ribs has lasted an hour? The combat part seemed pretty quick to me.
Other than that I have no strong opinion whether to rest here or return to the gnome village. I'll go with the flow.
EDIT. Although if we've learned all we can I don't see any point in hanging around.
This message was last edited by the player at 06:20, Sat 11 Aug 2018.