When Morty, Gene and XXXX are talking at Gene's, just before they show XXXX Duke's dead body, XXXX says, "Listen. Listen to me. Dragan already killed Paul, he's done the Duke. He's just put a bullet right between Lucky's eyes." So he is saying that Dragan has killed Duke. Then a few seconds later he says, "Dragan said he wanted the pills and the Duke, where the f**k is the Duke?", which means he doesn't know where the Duke is, so he wouldn't know whether Duke is alive or not. [It doesn't matter whther he is alive or not-If he is dead, they still know that Dragan is after his head, and that he wil be looking for the body, if he is dead, or for the duke himself if he is alive.]
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