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What happens when the Clockwork Prince cannot play a card, and does it gain favor?

It takes the matched card, discards it, advances that suit's marker and takes the Can't Play bonus for its quadrant. Discarding alone gives no favor, and it gains no favor for playing a card unless the card is played to a site. Any favor from a Can't Play bonus comes from the bank of the discarded card's suit and goes into the Ambition box.

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