I've had a few encounters with Arhu that I consider bugs, though you might think of them as features. First, if you steal stuff from him, there is no warning before he initiates combat. The first time this happened, I tried fleeing (at about level 2 or 3) and wound up in a completely black area whose only local content were two tiny blue arrows or something. Nothing showed up when I brought up the map to see where I was. Hitting <space> to end combat did nothing, and I couldn't select any other characters. I had to reload.
I just tried it again, now at level 6 and with an updated beta, to see if I could reproduce the bug. Still no Arhu warning. Fleeing combat dropped me next to a teleporter. Again, hitting <space> did nothing, but I could select another character and again flee combat. Three characters wound up safe, but one dropped into that black space again. Fleeing combat separates each character from the group. When I reassembled the group and took a step, everyone was there. So it worked, sort of.
Finally, Arhu suggests you take the manual for his gadget, but he doesn't give it to you. The game treats taking the manual as stealing. You need the manual to know how to use it, and the gadget worked fine for me.