I... think I did this fight a little bit differently than all of you.
When I met Isobel I instigated a fight accidentally agro-ing her and siding with the bad guys. Then I killed all my "allies" and then was forced to down Isobel to end the fight. Weirdly, none of the harpers attacked me, and instead just helped me fight my "allies" and only Isobel was 'red'.
At the end of the fight
Isobel got carried away and the whole place turned into zombies except Jaheria, who helped me fight.
Jaheria didn't survive act ii for me, but neither did Isobel
after she got carried away I killed her in the final fight of act ii