Man, this is the kind of topic that absolutely shreds the typical power fantasy premise the minute you really think about it. The conflict basically ‘escalates’ out of the hero's weight class entirely, which forces authors into some pretty creative corners. You can't have your standard sword-and-sorcery crew taking down a being that embodies entropy or war itself through a well-placed stab. The conflict becomes existential, metaphysical, or brutally political. Does the mortal world try to contain it with layered magic seals? Does a church structure rise to worship or control it, leading to a holy war? Does its mere existence start warping reality, creating a setting where the rules of magic or physics are literally breaking down? That last one is my favorite—stories where the presence of a true demonic god makes the world itself a character, hostile and strange. Like in some interpretations of the Warp in 40k, where belief and emotion shape the impossible.
It also shifts the protagonist's journey from 'become stronger' to 'survive the un-survivable' or 'outsmart the fundamental.' The human (or elven, whatever) characters become like ants trying to divert a river. Their victory is never about raw power, but about exploiting a single, devastating loophole in a cosmic law, or making a bargain so ruinous it's a kind of loss. That's where you get those haunting endings where the demon is 'defeated,' but the cost has hollowed out the world. The conflict stops being a simple battle and becomes a tragedy in slow motion.