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Press in Baldur's Gate is quite disreputable as the editor-in-chief didn't even bother to properly hide that he is Enver Gortash's lapdog but unfortunately, confronting him with the evidence will not help your case.
Instead, you will need to sneak into the heavily-guarded building of the Gazette and switch the stories yourself.
First, you need to get into the basement but all the entrances are covered by the guards' viewcones so it's best to use an Invisibility potion or spell on a single character.
Just before you enter the basement with them, press G to link the rest of the party with them, enter the basement immediately and you will have all four team members down there. The basement can be entered through the door inside the building or the elevator outside.
In the basement, you can choose to either sneak past the two Watchers, who will spot you even outside their visibility cone or just trash them with your full team, which I fully recommend.
After you dispatch them, click on the automatic press to start a conversation and it will suggest finding a new headline that will not ruin your reputation. The press is especially friendly if you freed Dolly Dolly Dolly from the lamp in Act 2.
To switch the headline, you will need to find a block with a headline that doesn't involve tarnishing your name. Both of the blocks are found in one of the neighbouring rooms. You will know when you enter it and hold L-Alt and it shows "The Cutest Cat You've Ever Seen" headline.
Either use that one or check the wicker basket in the same room to find "Make Big Money by Trading With Adventurers" which supposedly has a good effect on your reputation.
Once you're done swapping the story, I would suggest using the elevator to get out as it's easier to sneak out without incident that way. Just make sure you get out of the elevator as quickly as possible since Watchers can confront you even if they are not close to you. It is currently unclear if this is a bug.
