What is on record
An optional fight at the Mass Grave of the Mandate Encampment against a starving ghoul and an endless supply of corpses, only one of which, the green-flamed one or Xue herself, takes damage at a time. Beating her starts the tale Xue, Admirer of Heroes, which ends in the Sha-Chi Headscarf.
Who she is
Corpse-Eating Xue is an optional boss of the Mandate Encampment, behind a locked door (KeenGamer). Game8 files her under the Maskwalkers and says the fight drops no item: it unlocks the tale Xue, Admirer of Heroes, and finishing that tale gives the Sha-Chi Headscarf. PowerPyx's capture opens on the Mandate Encampment map with the Mass Grave selected, at 16% completion.
What the footage shows
At 0:10 Soul walks into a graveyard of red-lit tombs cut into a cliff, green mist over the ground. At 0:15 a cutscene shows a gaunt woman with long black hair over a hollow face, in torn grey robes, standing among toppled gravestones; the subtitle label is three question marks and she says, "So hungry... I'm so hungry..." The name bar "Corpse-Eating Xue" is on screen from 0:20 to about 2:35. At 0:35 a green arc sweeps the ground as corpses rise around her; at 1:05 and 1:35 she closes in among them; at 2:15 a green orb hangs beside her; at 2:30 Soul is still swinging through corpses carrying spears. At 2:45 the tale prompt reads "Xue, Admirer of Heroes: Collect the Heroes' Belongings from Xue (0/3)".
How Game8 handles it
The fight starts as one against five, Xue and four corpses that respawn endlessly. Only Xue's own body or the corpse wreathed in green flames takes damage; the rest are a distraction. Corpses with spears have long reach and can hit from off screen; those with two garden hoes use multi-hit strikes and jumping attacks that close distance; each type has red-glint and blue-glint moves. After Xue screams she charges into a grab that can only be dodged, so move away when you hear it so the grab comes to you. Back off so enemies come one or two at a time, and kill spear and hoe corpses first even without the glow.
Drops
None from the fight itself (KeenGamer, Game8). The tale it starts ends in the Sha-Chi Headscarf accessory, per Game8.
The phases above are the ones shown in official footage, named by their on-screen name bars. Tells, punish windows and health thresholds are added only once the retail fight has been checked; we do not invent them from trailer cuts.
