Source: Pathfinder 2e Gamemastery Guide
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The Experience Points gained for besting an NPC depend on how the party overcame them, because XP comes from overcoming a specific challenge. If the PCs defeat the NPC in a non-combat setting of the NPC’s specialty, the party gets XP based on the NPC’s non-combat level. If they just beat the NPC up, the XP would be based on the NPC’s creature level. Quite often, that means 0 XP and failure at the PCs’ objective; for instance, during a baking contest, if the PCs murder the other baker, not only would they be disqualified, but the would likely be apprehended for their crime.
Well, you’re not defeating the baker in a way that would be worth much XP, since presumably it’s not much of a challenge to kill him. But if you end up defeating the investigators by getting away with the crime that would be worth something instead.