Turns out that the true owner of the forbidden palace is a fox spirit and most of its workers are fox spirits. While Damon was focusing on triggering his breakthrough he heard the conversation and quickly made a few deductions, theories, and conclusions. From the little he has seen so far, he couldn't help but take note of the fact that the empire is aware of their existence just like the Hail yet do nothing about it.
One may ask why and Damon did that too. After pondering for a short while, Damon concluded that the forbidden palace must be a very lucrative business and must be sharing its profits with the capital. Only massive profits can make the emperor overlook the existence of these demons in a particular location of the kingdom!
Despicable!
The more Damon knew of the son of heaven and this kingdom, the more he saw the double standards that rule the world and now he wants to break free from this cycle and leave.