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.