The Hellhound fails its dex save and takes 10 damage.
Jorr misses with his bolt.
Given the lack of anything from Iceman, Bernie moves slightly up and hides; due to armour disadvantage even with the PWT he gets a 14, which is lower than the Pass Hellhound's passive perception. It notices him.
The nearest hobgoblin veteran takes a potshot at Paul (unseen due to darkness), and misses.
Paul is up.
Initiative Order:
HVet: (1d20)[20]
Paul:(1d20+1)[15] BLESSED
HReg: (1d20)[14]
HH: (1d20)[12]
HSer: (1d20)[12]
Oz: (1d20)[6]
Jorr: (1d20)[5]
Wuffles: (1d20)[3] BLESSED
Bernie: (1d20)[2] BLESSED
Leif: (1d20)[1]
Ayalla: (1d20)[1]