That didn't happen because of the transformation, actually; that was a coincidence. Rather, each landmark increases markedly in prices the closer you get to the portal. The game really encourages you to spend all your money at the start, except for some emergency funds for the Sanctuary and Temple to save a very important party member. Unless I misunderstood your meaning somehow?
That said, depending on your transformation, your party was probably hit by a lot of events related to your new transformation eroding their morale and raising their lust... It's not something that I've often seen be an issue often (outside of nympho/depressed/sickly party members) otherwise. That said, I don't normally go for maximum distance either, so that could also be why!
...As an unrelated aside, I just wish I could go one blooming run without the Demon Hound Master attacking <_<;; ... Not that it's a particularly harsh event or anything, I just don't like the notion of being forced to choose between "Be a coward and take two afflictions almost at the start of the game" or "Be a hero and your best soldier dies". At least the "TG two of your party and also turn them into dildos" event usually comes late enough that you've scrounged up some decent potions for them... ...Not that that always helps.
You did misunderstand the meaning, though the transformation did help make things more difficult due to the naga not being able to light a fire for several hundred kilometers(That means lust on several people).
btw, my post wasn't a complaint, it was more of a story, with a few things the author needed to know about added in.
Also, Every run I've ran has had the Demon Hound Master attack... Though the most interesting run was when my elf turned into a fox wildwoman. It is unrelated, but I had a female become a male's dick, only to have that male transform into a female later by water nymphs. Eventually I found a temple with a strange altar/statue while travelling where she/he could get his/her dick back while inside, yet it would vanish upon climax, and give her/him money. Needless to say, I had the character keep going back in until she/he was captured. Then... I discovered that the game does have a futa character, just in a minor role and with the most interesting in my opinion epilogue.
The chain happening to that one guy was pure coincidence, and only counted the last part in the epilogue.
Edit: The event with backwards story(female to male showing male to female story) is The Shrine of Magnus. This seems to be happening with other events as well, since it is probably transforming the character, and then choosing the text to show.
Edit2: Also, an event named "Suds of Power" seems to break the game on male elves.