Source: Pathfinder 2e Gamemastery Guide
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The Experience Points gained for besting an NPC depend on how the party overcame them, because XP comes from overcoming a specific challenge. If the PCs defeat the NPC in a non-combat setting of the NPC’s specialty, the party gets XP based on the NPC’s non-combat level. If they just beat the NPC up, the XP would be based on the NPC’s creature level. Quite often, that means 0 XP and failure at the PCs’ objective; for instance, during a baking contest, if the PCs murder the other baker, not only would they be disqualified, but the would likely be apprehended for their crime.
What if I murdered the baker in secret? 🤔
Like maybe I use my super high charisma as well as undetectable alignment, posing as a cleric of when I'm actually evil, and when we shake hands, I cast Death Touch so it appears like my opponent suffered a heart attack?
(Based on a real scenario my evil cleric did in an actual game)
Well, you're not defeating the baker in a way that would be worth much XP, since presumably it's not much of a challenge to kill him. But if you end up defeating the investigators by getting away with the crime that would be worth something instead.
You would then have to have someone impersonate the dead baker during the competition, or the murder would no longer be secret. You’d be on the short list of suspects, no matter how good your disguise. I think mind control would be a more practical solution. Just make it impossible for them to win, without getting arrested.