version :ego draconis from the dragon knight saga xbox 360 version played.
npc involved : Carl the farmer on the farm south of the starting village in broken valley.
bug : when hes arrested he reappears back at the farm and talks as if hes inside his jail cell. which he should be.
steps taken prior to bug appearing : talked to carls wife. got her quest. mindread her.
got both keys from carls farmhouse.
went into cellar. got diary.
gave the diary to the guard captain.
gave letter to Derk.
went into inn to see if anything was new.
went back to derks to check for locked chests etc, and saw Carls wife there. she knew about murder etc.
went back to farm and saw the mini-cutscene of guard captain arresting carl.
went back to town to do stuff.
went back to farm as part of a pigs quest.
carl was standing there. slouching over.
