Right now it is better to kill. I knocked out the two tieflings who wanted to kill the goblin prisoner after failing to convince them to stand down.
Every time I got close to there afterwards they tried to kill me again, turning the whole grove hostile. So it's either doesn't work as it supposed to, or it is completely useless


Larian's Biggest Oversight, what to do about it, and My personal review of BG3 EA
"74.85% of you stood with the Tieflings, and 25.15% of you sided with Minthara. Good outweighs evil, it seems."