Not sure if this is the right part of the forums but really, can't figure out how to even get started on this one.

I think the army has to invade (opposite honour quest) for you to repulse the army.

They have.

Which quest do you speak of?

The Bottledowns 'get the artisans to get rid of the toy army' quest

This quest?

Either it doesn't start at the facility or bottledowns, or it isn't nearly as straightforward as the Lusternia wiki implies... or it might be bugged. I'm sorta leaning towards the latter one myself, unless anyone else knows something I don't?

Tip: Hidden rooms may be annoying, but when they exist in an area, they're usually important to the quest there.

Tip 2: As Ragniliff said earlier, when in doubt, kill the things that you are working against and try to figure out who wants them.