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(+2)

Are you expected to lose after a few battles ?

I'd go through 3 fights, then on the 4th one, on the second turn, a Hyena would always go first with the stun move, which is essentially an instant kill attack when you're on your last...hypnosis thing.

The Keys can help you, that or defeating Mahir and getting the charm

Going through the hypno cycle...four times I believe is a full down/defeat. To avoid that, avoid going through the cycle so many times. The keys can help, or just some care and the occasional save scum. The kind of "average" playthrough of Ent Dist I is that you end up full losing once, but it's certainly possible to avoid that.

I have no idea what the keys do.

Try them out in combat!