The
patch will prevent this problem, but not fix it once it happens (most CD re-release versions of the game, and all DVD versions, should already be updated to the latest 1.0034A version, as shown in the bottom right corner of the main menu, so would not need to be patched.)
However, there is a
FIX for broken Imp Council Member quest, so you do not need to revert to an earlier save.
What is your reputation? If it gets too low people may start refusing to talk to you. If it is just the generic people in Verdistis, they don't have a lot to say normally (just a comment, with no dialog options).