In my first play through of this game, I decided to avoid stealing and breaking and entering. That got the Mysterious Murder kind of stuck with suspects all saying unrelated things (I didn't check thoroughly, though).

I was going to just leave it until I finish the other quests.

When then I went to find the Mighty Staff, my journal for both Mighty Staff and the Murder quest updated after the fight. The murder quest updated with "The path to the lair mentioned in Evelyn's diary was guarded, and we had to fight a sailor named Dietmar and this thugs."

I never broke into Evelyn's house, so I've never read her diary either. I should not have been able to make any connection. Dietmar should not have updated A Mysterious Murder. frown