It certainly used to. I accidentally destructed him in an FA ironman game once and thought that was the end. Thankfully a summon monsters trap brought him back!
I have not finished with my Priest (waiting until I have a big time block), but have
started a Gnome Mage. Is there any updated info (he is playing 3.2.0) on the dungeon magic books? The spoilers seem out of date...
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