Even though Ragnar was not loud, as Lex was paying extra attention he clearly heard the term 'Devil'. Were these the leaders of the zombies? Did they get the keys? That was the only explanation.
The atmosphere was extremely tense as the 600 Jotun soldiers immediately got in position for battle. The humans from Earth were dumbstruck watching these supposed fictional horror story creations appear. When they noticed the soldiers gearing up for a battle they started backing away quickly, so as not to get caught in the crossfire. Unexpectedly it was the Beasts who had no affiliation with the humans and should not have known the demons who showed the greatest hostility. In fact, were it not for the quick reminder by a few smart Beasts about the Inns non-combat rules, they may have already attacked.