From references in a couple books elves and dwarves are believed to have been wiped out, but that doesn't necessarily mean that they were. There may be some in hiding in remote areas in Rivellon, and there is a temple with rifts to other realms that some could have escaped to. Also, Damian made enemies of a race who could create rifts in his effort to return to Rivellon after being banished. They didn't fare well against the Black Ring, but the ones remaining would be inclined to help anyone else opposing them.
can someone sum up the story - DD and BD Spoilers, though main points are given in books throughout D2:ED/DKS
Divinity 3, starring the Divine One? - D2:ED Spoilers, particularly the ending (discussion from before the release of FoV)
