So, when you first encounter the Scribbler, it says he is undefeated.
Do you treat this as if you had failed the combat check entirely?
If you defeat him, do you take the blessings from the blessings deck or the box? Can characters temporarily close locations? Does the location deck he is in close or can he potentially escape back into the same deck?
You treat him as you would any undefeated villain. Mammy Graul from Them Ogres Ain't Right had the same mechanic. Here is the sequence:
Encountering a Villain
Attempt to temporarily close open locations. - Normal
Encounter the villain. - Normal
If you defeat the villain, close the villain’s location. - He is undefeated, so you don't close his location.
Check to see whether the villain escapes. - He can escape(even if only back to his own location). If there are other open locations (not permanently or temporarily closed) then take blessings from the blessing deck, because he is undefeated. Shuffle the villain in with the blessings, put one at each open location, shuffle the locations, and continue your turn.