If this fight will ever be doable it will always be via some cheese. Lvl 1 you do max 19dmg per turn with your 2 available range characters while the enemy has 200+hp combined.
You can also kite them with jump (up and down gallery) or around the "holes" downstairs. Stealth cheese is just less tedious.
Would love an AI fix that would factor in some "threat" so that after few loops AI goes for the character that actually threatens them and not chase the closest one. (you would have to then cheese by starting to do dmg with the character that kited, but emersion would benefit).