I'm aware that the eldest Fertio son is supposed to go manage the annex village near Van's main village, but it really seems to me that they're going to want Van to rebuild Scudetto and then ensure that this key territory is never taken again. It still takes him months to build large walls to his satisfaction so this is not a small ask. The best incentive to ensure that Van protects Scudetto with everything in his power is to give him the territory and/or put someone in charge of the city that he feels indebted to. His father is definitely not that person, but his elder brother on the other hand... But I might be wrong and perhaps Lady Panamera takes the city as technically she would have been the key general, using Van's troop, to retake it. Well, we'll see.
Hopefully, most residents of the city managed to flee when it was taken and it was just manned by enemy military troops by the time it got wrecked by the dragon.
Still, what a nasty plan to want to unleash that red-copper earth dragon on the Scuderia royal capital to burn it down, considering its firepower.
Honestly, it's also strange to behave like that because peasants in feudal systems are bound to the land and are essentially exploited by the nobility. When you capture a territory, you take the peasants in too, because they're a resource that increase your wealth. (And warfare tends to be sordid, with soldiers being rewarded with loot and rape.) So taking over territory by burning it down and chasing its people away from it is a bit odd, when all you really need to do is purge the nobility and then replace them.