Alarielle comes back as a Wood Elf Hero?

Hey folks, random question here.

I am currently playing a Wood Elf run of IE as Durthu and **The Donut**™️ got blitzed (as always) while I was dicking around in the east.

Finally got around to using the World Roots to colonize the ruins of the Gaen Vale and got a dilemma I’ve never seen before on the next turn that I could opt for a faction wide buff or Alarielle becoming a Wood Elf hero.

Is this a base game thing or is it part of the Victory Conditions Overhaul mod?

EDIT: Corrected the settlement name.