User blog comment:Harold Burned-Mane/The Truth about Ulfric Stormcloak/@comment-1600847-20130911183702/@comment-1600847-20130912043729

The decree Scouts mentions forbids them from living in the city, not from entering it.

And yes, all we have is Scouts' word that such a decree exists. Just like everything else in the game, we rely on in-game books and NPC dialogue for sources and proof. By your logic, how do we know that, say, Ulfric fought in the war with the Dominion? Do we see him doing so? No, all we have is his word on it. Just like everything else in the game we don't witness firsthand.

I think you're looking too far into them being homeless. Bethesda didn't make any empty homes in Windhelm for the Argonians because they're programmed to sleep in the Assembage.

So yes, I have in-game proof the Argonians are forbidden from living in the city: NPC dialogue. Why would Bethesda have programmed NPCs to say it if not for world-building info?