The toughest part of this fight is that they eventually teleport on the high ground and it takes a few turns to run there. So, leave your ranged characters up there and approach with a single one. I didn't do any masquerading, killing gith sounds like a good idea anyway. Thanks god the dragon flies away before the fight though, that one is too much for level 4.
The melee and cleric characters were wasted via ranged attacks from the bridge and two ranged characters eventually got killed by rogue and mage who were positioned on the higher ground. I actually went there not fully rested, but my mage still had tadpole ranged protection which helped a lot.