Whats exactly the story behind Watari, that woman and his connection to Highland?
There are no exact details, but I will tell you whatever I know. Watari was a member of the group “Kage” (Oddly translated as “Black Wind” in the US version), which served the Highland Kingdom, and the Dunan Republic after Highland was defeated. Watari was apparentlt involved with the Higheast Rebellion, and defected to the loyalist’s side. The “woman” seems to have something to do with his loyalty, and choice to defect from his clan. My speculation is that this woman is some sort of rebellion leader figure, or an ex-Highland royal family member, such as Jillia Blight.