Kithgard Mastery: Awards Simple Sword?

I have noticed that Kithgard Mastery awards the Simple Sword. However, I believe that a sword is required to complete the level, e.g to kill the munchkins. Is there a different reason why the sword might be awarded?

You automatically get to equip it to play the level, but you don’t get to keep it until it is awarded. (The idea is that Kithgard Mastery can be beaten for those players who want to skip the whole dungeon without missing out on necessary game items found therein.)