Feed the Kraken
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How is the navigation resolved when fewer than three players remain?
The rulebook's note covers the under-three case, and the designer confirms the two-player steps.
The captain fills any open seat randomly. With no lieutenant, the captain takes two navigation cards face down, shuffles them, puts one in the logbook and discards the other. With two players and no navigator, the captain and lieutenant each put one card in the logbook, and the captain shuffles them and reveals one at random. The game continues.