First of all, thanks for posting the summary; I understand your concerns about spoilers, but knowing the overall structure of the story will really help me (and others!) tailor my critiques.

Secondly: You haven't written anything for chapters 4 and 5. I assume this was an oversight, and that 4 and 5 explain what Thorn's "surprise" is.

I'm going to try and write a summary of the plot to see if I've understood it. (I haven't read any of your other stories yet, so I may well be confused about some things that get explained in more detail later; obviously, however, the basic plot of this story should be approachable for any new reader.)

The bratty prince from chapter 1 is essentially a red herring: the guy with the real interest in Konig is his elder brother, Palawa Joko, who wishes to use the Apocrypha to become more powerful than Konig because he's Palawa RED ENGINE GORED ENGINE GORED ENGINE GORED ENGINE GOing Joko.
Thorn initially arrives in Istan to befriend the royals, but Joko slowly turns him insane... though we don't learn why he wants to corrupt Thorn in this story.
I didn't notice any explanation for the cause of the scarab plague, but I assume that's also Joko's doing. Konig tries to save the day, but Joko's clever plague disables him, enabling Joko's escape.

The first thing I notice about this chapter is that it doesn't cover all the plot points you set out for it in your summary: what happened to the befriending, and Janah's suspicions? I guess I can sort of see this being hinted at, but it feels like you're promising to go into more detail in the next chapter instead. Was that an intentional change?

Did we really need an entire chapter just to learn that Konig senses magic coming from the palace? Perhaps if he'd been doing something more interesting than just wandering aimlessly about, it might have been worth the read; as it is, however, it feels like you'd be better off melding it into chapter 1. Speaking of which, though ch1 establishes setting and characters, it does nothing to get the plot going.

I enjoyed the little lore easter eggs, such as the explanation of why a so-called city doesn't have any buildings in it, and the dramatic irony of a future undead Dread Lord being a lovely person.

Bolded: You've used a lot of wimpy qualifiers here: "also", "slight", "on occasion". Your goal is to make the reader feel like they're standing on the streets of Fahranur with Konig by invoking their own olfactory memories of hot dirt -- not to give them a report on soil quality. Be braver.

Bolded: Comma should go outside the quotes.

Underlined: This is still the wrong tense.

Bolded: Whoops, missed this one the first time around. Change "Konig" to "him". You've already used Konig's name in this sentence, so it sounds repetitive, and the situation already makes it clear who's getting knocked down.

Bolded: It's redundant to say he breathes in the air around him. What else is he going to breathe?

Underlined: This is just a rewording of the previous fragment. Remove.

Bolded: Eh, this phrase sounds like something a gossipy teenager would say, not the narrator of a grim fantasy. Reword it.

Underlined: Wrong word. Change to "because" or "due".

Bolded: I'm not sure any of the bolded really needs to be said here. We've already been told that Konig can feel the magic, and we've just seen the spell fail, so it's pretty obvious that that's what's confusing him.

Underlined: Need a comma (or two) in here somewhere.

Underlined: Wrong tense.

Bolded: Need a comma between these words.

Bolded: "Constantly" isn't quite the right word, given that Konig is testing every so often, rather than leaving the spell running. Try "consistently" or "invariably".

Underlined: Should be "lay".

Bolded: Who's "they"? Also, this should be past tense.

Underlined: Should be "couple of canyons".

Underlined: Comma should be a semicolon.

Bolded: Konig has already sussed the answer, so he doesn't need to find anything out. I think what you meant was that he needs to confirm it.

Underlined: Wrong tense.

Underlined: Wrong tense; "that's" is always a contraction of "that is", even if the context implies it should be "that was".

Bolded: This wording implies that the peasant persona is the one looking for things to study in secret. The peasant wanders, but the prince is the one looking for things to study.

Underlined: Should be "wandered".

Underlined: This sentence is really badly worded. I get that it's describing the cross shapes formed by pillar-arches curving into the ceiling, but it took too much thinking and rereading to figure that out.

Bolded: "The few windows in the hallway" should really be kept as an entire phrase, instead of split up like you've done here. It should be obvious from the mention of stained glass (that's how you spell it, by the way) that the bit between the dashes is referring to the windows and not the hallway.

Underlined: Okay, I'll start off by saying that I'm not terribly familiar with this word, so I might be missing something here, but a dictionary check tells me that it means "cancellation or postponement of punishment".

Bolded: I know you'd prefer not to use a comma here, but this line reads particularly awkwardly. Try sticking the tag between "Orrian" and "Interesting", instead of at the end of the dialogue, or reword the tag to make it more concise.

Bolded: The words "quickly" and "uncaring" don't really fit together very well: if he doesn't care, why the quick response? A better word than either of these might be "dismissive".

Cute idea! It really reminds me of Scooby Doo -- Scooby and Shaggy perform that pose in virtually every episode, so you might find it to be a useful reference. The main reason it looks like she's about to drop him is because he's letting himself hang from her arms, towards the termite, instead of tightly hugging her as though he was trying to get away from the termite.

And yeah, the termite needs to be closer. It's an important part of the picture, so it needs to be somewhere the eye will spot it quickly. I also recommend moving the Thorn and his servant into the centre of the page, instead of letting the woman's feet get cut off: again, they're an important part of the picture, so don't let them drift off the page.

For the background, just use Kamadan; it gets decorated during Halloween too.

Thorn looks okay; he could stand to be larger, but the most important thing is making his head bigger. The woman needs more work, though; her knees look like they're at different heights, her shoulders are lopsided, and her neck thickens towards the top instead of towards the bottom.

Finally, I recommend switching the speech bubbles. Western audiences automatically read left-to-right, so we see the "..." before the "TERMITE!!". If you were to change the woman's expression to something more along the lines of "¬_¬", then you could remove the "..." entirely.