Oreilly, a foe to the northeast attacked us, but we won! They lost more buildings than us! Sadly their people refused to be vassalized by our inferior faith. Objects tithed: One bauxite, one enriched uranium and one coal Munitions used: 6 coal No buildings lost! Our spy breathlessly reports their losses: One windmill. Our fallout increased by 1.
This combat occurred while Oreilly was already vassalized by me (attempt by vassal to escape vassalage by winning combat.)
From the battle report, it's not clear if the intent is that Oreilly should have their vassalage removed as they have superior faith than I, or if because they did not win, vassalage does not change, regardless of faith.