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.
