A topic from AEG's L5R CCG Rules forum, copied for Oracle of the Void from a copy of the forum saved in October 2015, so pages it didn't save are missing. Players' names are left out; the rules officials are named. Rulings are as they stood on these dates; later rulings, the rulebooks and the Rules Archive may differ.
A player, 12 May 2010
Regarding this thread: viewtopic.php?f=59&t=77200&p=1013832&hilit=encircled#p1013832
Do I choose a personality for Height of Courage immediately as I play it or can I choose the personality at the point Encircled Terrain moves my personalities home?
And if played correctly, Height of Courage will negate the movement of my personality from Encircled Terrain, right?
Dan Jacobson (rules official), 12 May 2010
Regarding this thread: viewtopic.php?f=59&t=77200&p=1013832&hilit=encircled#p1013832
Do I choose a personality for Height of Courage immediately as I play it or can I choose the personality at the point Encircled Terrain moves my personalities home?
And if played correctly, Height of Courage will negate the movement of my personality from Encircled Terrain, right?
As the thread in your link says, The Height of Courage is played before Encircled Terrain enters play, well before both sides pass and the effects of the terrain occur.
If played correctly, yes, The Height of Courage will stop Encircled terrain from sending that unit home.