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Quest either bugs by not spawning the boss in a locked room, or the Allied NPC will not move when directed to "Follow" him. Only quest I have till I can move on to Auridon, Sipport has been no help.
This quest is bugged.
If you didn't get update after beating all mobs in the 1st lvl of Doomcrag, delete the quest and restart again in the castle.
That's how it works for me.