When fighting Drodda the Witch end boss she becomes invisible making it impossible to damage her therefore making it impossible to finish the dungeon and the quest.
I have seen this once before as well. The workaround is for everyone to exit back down the trapdoor, to reset the fight, and start again. The issue is not specifically that she becomes invisible, but rather that she sometimes stays invisible permanently (when the fight glitches), and never re-appears (but keeps spawning frost atronach adds).