Yes, i had the same problem. Oracle said #2 or #3 (herself or Wretch) is a Witch, i killed both and niether were the Witch. So she was lying but was not corrupted and was not evil.
does Wretch work as Witch, Minion, Shaman, Poisoner etc.? any minion and not just The Minion? if thats the case then i understand but its a bit confusing (that there is a category Minion and a character Minion)