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Playing my first game and have a question.

My second turn I drew a King of Clubs. "Burrowing beast (20). Dig a tunnel straight up from this space. When it reaches one of your rooms,  combat starts and it moves normally towards the Entrance. Can be tamed, does not burrow"

This is on my first floor. Does it just burrow up out of the Hold and is gone? I know burrowing enemies usually turn around and dig back down but this description says "does not burrow" at the end. Do I now have a hole in the roof that needs to be barricaded?

If it doesn't dig straight up but goes for the entrance since it is already on the top floor, since this is only my 2nd turn, does it just fight immediately  and I lose 4 of my starting Soldiers at the Entrance?

So the optional Natural Growth step isn't something that happens after the Events, but that you choose to interject at any point(s) during the history? I think that's the biggest thing I missed and I was lumping Natural Growth and Topping Out together in my head. 

I feel like there is something I am not understanding. Is the only time you move tokens from the Pool to the City when you add a District (or increase its density)? That is the only place in the rules I see other than the Topping Out Phase at very end. If this is the case when making a Village or Town it is possible to end up with only a single District and thus only one Citizen Token on the map while having two or three Factions which all say they are supposed to draw their tokens from the City or another Faction note card, not the Growth Pool. If you don't randomly roll an Event that adds a district, every Event that changes a Faction's Power just slides the single Token around constantly. Can a Faction exist with no tokens? If not, does Rolling two Factions when you only have one District mean that one of the Factions is instantly removed? Or can relatively powerless Factions just exist and they just keep playing hot potato with the only Growth Token in play?

Aside from these questions I am loving this thus far, both as a single player game and a tool for designing places for games/fiction. Just a bit confused...