Wondering Monster + Will not Pursue Restriction (Base Game)

[josh_dog2]

While Playing a game tonight, a wondering monster with the monster "Squidzilla" was played. "Squidzilla" had a limitation that it would not pursue anyone level four or below. The player fighting both monsters was level four at the time of playing the card. At this point he was losing the fight.

The rules state when a wondering monster is played "you must defeat their combined combat strengths"

The two arguments were 1) Since it does not pursue level 4 or below its combat strength does not count towards the fight. Therefore only the original monster's combat strength applies to the fight. Or 2) "Squidzilla's" combat strength does count and you must fight the combined strength. Which at that point if you cannot beat them, you may automatically run away from "Squidzilla" (does not pursue level 4 or below), and then you must then roll and try to run away from the other monster.

Question is where either of these two interpretations are correct, or is there a different rule that covers this situation?