I am not sure about the behavior of the current implementation. If it
only always you to discard once, but allows you to discard after the
first settle, it's a correct implementation of the rules. Does the
implementation disallow using mercenaries on the second settle, if you
haven't used it in the first? In RvI you can discard additionally if
someone is trying to take you over, but you can't discard extra for an
IL settle.
(But the DE/DAF thing is still a bug).