This quest is on infinite loop. After defeating Generale Sapo, the game directs you to talk to Ensign Richie, which generates the same starting dialog and the same battle ensues. I did it twice just to see if there was a glitch the first time. Nope. The same dialog and same battle, three times in a row.
Also (maybe this is intended) more federales keep joining the battle every few turns, even after the General has been defeated.
I have come across the same problem in Ensign's Cave. After defeating all enemies, talked to Ensign Richie, they say the same things as before the battle and am asked to defeat Generale Sapo again!