This happened to a friend and me this week. We were grouped with two other people. We did the Fall of Faolchu quest, all the way up to the turn-in conversation with Darien. In that conversation Darien asks about getting a drink. When chose to tell him that he is not my type, he phased out in front of my eyes. Something similar happened to my friend. The other two people in our group were able to complete the conversation and complete the quest.
Since then I have tried going to character select and coming back, quitting the game completely and coming back, and this morning logging in after the server reset. Nothing works. I see the quest icon on my compass and on my map, but I do not see Darien. No Darien, no interaction with Darien, an incomplete quest in my log and no achievement for getting rid of Faolchu. Being a completionist at heart, this is annoying.
Has anyone else run into this problem? I did submit a bug report. Anyone have a good workaround (short of dropping the quest and doing it over) until this problem bubbles up to the top of Zenimax's priority list?
Thanks!