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I don't have access to it here, but there was a take floating around with alternate starting equipment for low-, middle-, and high-magic campaigns. Presumably, these options are present in other places in the book.

In the FreeMG*, there is a table for "Adjusted XP per Day," which I'm assuming MagicSN's DM is ignoring. If they are using those rules, then that single encounter should be Deadly regardless of level. Either way, only having a single encounter each day is going to break the game at least a...

Why would they be in the MM? The MM is for pure stats, not on running the game (which is what Morale is for). That's the role of the DMG. The MM is--supposedly--intended for use by both players and DMs, and players don't really care about Morale.