In an earlier build, I played with a friend for a bit. He was hosting and controlling Roderick while I joined his game and was controlling Scarlett. He went ahead to the Inn while I was off somewhere else. I got the "!" icon above my head indicating that there was a dual dialog moment waiting. I asked if he done something and he said he took something from a crate in the inn, which was considered stealing, and got caught. When I got to him and we started the dual dialog, his character (Roderick) was telling me (Scarlett) not to steal things.
I just gave the new Beta version a quick spin to see if it had been improved, but so far the dual dialog system still seems to confuse which character started or caused the dialog to start. In this instance, I just got to the two guards just before the city. I had Roderick choose to agree to go to the wizard and Scarlett chose to fight them. Scarlett won, but after the fight in the dialog between them Scarlett was blaming Roderick for starting the fight.
It would also be nice to have an option for either character to give up and agree with the other at any time. I don't remember if this was present before at all before, but now it seems to be "half way" there. In the same instance above, after Roderick made the initial choice, Scarlett chose a different option. Roderick's next options were to challenge Scarlett or to agree with her. After this point the only options are to argue until one wins. For multi-player and role playing in single player, it would be nice to have the option for one or the other to give up and agree to the other's choice at any time.