I have defeated the kraken. I equipped the diving helmet on my main char( the helmet you get from the girl you save from the cave with the wichts and via a stronghold adventure). Then I chose to use the hammer myself. The was game over because I failed a con check. I loaded the game, gave Eder con boosting items and let him use the hammer. He survived and I could finish WM2 with all chars alive. I also equipped the helmet on Eder, but I do not think it matters.

I think when I finished an earlier version of the game, the helmet was in my inventory (not equipped) and when a char used the hammer, the slides says the char was saved by the helmet.

 

Is the helmet supposed to save you when you destroy the eyeless?

Should it matter if the helmet is in your inventory or equipped?

 

 

Have you tried with the helmet just in your inventory and not equipped when the adventure book scene starts? It shouldn't matter, but maybe the game is bugged this way. I remember the 'cutscene' text mentions that the chosen character puts on the helmet in order to survive. When I got this (not in 3.07 though) I had the helmet in the stash, not on my character or in any personal inventory. (Unrestricted stash if this matters.)

 

I'm very much certain the helmet should save any character in this instance. Also the inventory thing shouldn't matter, but maybe the game looks for helmet in a certain place and ignores it in others.

This happened on my save. The helmet needs to be unequipped in the inventory to save you.