The Gods Become Active
The gods sent divine messages to their prophets to cease all hostilities with the Daemos. This was the first time some of the gods sent divine messages because they did not like to meddle too much in the affairs of their worshippers.
The gods let their worshippers have free will because it will cause stagnation if the gods themselves lead the people. The only reason that the Daemos became public enemy number one is due to the Church of Light and Church of Battalia advocating against them for centuries.
The church heads of the two major religions did not like what they heard from the prophets. The angels did not like the demons because they think they are unclean, but they are really just jealous of them.
The Church of Battalia where the gods of war are worshipped did not like demons because they are against the beauty of war. They have been taught that demons are just beings of utter destruction that does not conform with the natural beauty of battle.