So I'm playing a different character and meeting Auntie Ethel for the second time. The first avatar played out fine where I had a conversation with her and Mayrina. This time I've gone to her Tea House and at the first conversation choice
I immediately chose to attack her because I know she is a hag, and this avatar would not converse with one. I was successful and she did not escape with Mayrina to her lair below. I spoke with Mayrina and then recovered the wand to raise Connor.

Mayrina now sits in the Tea House and will only repeat her conversation. The area with the caskets still has an arcane barrier around it. There is no way to use the item which progresses the quest line. The quest journal continues to indicate I should look for the item which progresses the quest line. It's a dead end.