I've run this quest before, and I'm pretty sure the high elf, Fatahlah, didn't turn into this last time I went through...
Also, after the illusion was broken and she changed, her audio disappeared, both when talking to her, and when she appeared in cutscenes. Fortunately I have the NPC text in my textbox, otherwise the conversation between the NPC's would've been very onesided.
EDIT: Also, in my last playthrough, I remember all the 'guests' turning hostile once the illusion was broken. This time, they're still unaggressive. I don't even have the yellow aura around them, just normal villagers. The ones indoors are proper enemies, though.
Edited by Runefell on November 30, 2014 1:33AM Rune Fell- Dunmer Mag Sorcerer (DC)~The Adventurer
Runed Claws- Khajiit Stam Dragonknight (DC) ~The Tank
Rain Fell- Argonian Mag Templar (EP)~ The Healer
Dragon Talon- Bosmer Stam Nightblade (AD) ~ The DPS