Thanks for the detailed feedback!
I hadn't yet heard that it was unclear exactly what's going on, but I think I know why you felt that way. I designed this to promote a lot of emergent gameplay, and so focused on building the mechanics that affect the encounter rather than context to understand what and why things are happening. That might be the most valuable piece of feedback for me when I make my next module so that I give a better idea of what's going on rather than simply giving all of the facts and leaving the reader to gather context from the data points.