This apparently goes back to its release. I have done it once a while ago, by relogging and doing the quest again. Now its just like it was. Why is this?
I just completed Greymoor a few weeks ago and didn't have any trouble with it. From what I've read, it seems like some people have trouble and some don't-- that is, it's not a consistent thing.
It actually sounds like a typical desync or disconnect issue. I do run into those occasionally, so I guess I was just lucky not to run into one during this quest.