Manifested Fate is a survival horror adventure set in the plague ravaged city of Phosphine.
Letting these guys go will shift your alignment towards good. Reasoning with them is neutral and won't impact your alignment and will allow you to remain neutral. Threatening them will slightly shift your alignment towards evil and murdering them obviously will be a evil deed.
Letting them go has no consequences. Recruiting them means they end up helping you and other guards. Killing them allows you to loot them (optionally you could also steal from them).