Until this bug is patched.....

1 before you talk, save or quicksave
2 talk -> mindread -> give item
3 glitch happens -> save or quicksave
4 exit to windows -> restart game
5 resume game -> finish conversation
6 if/when glitch happens again, repeat steps 1->5 or 3->5 as necessary with each sleeper.

Thanks to the guy above me for the drop to windows trick. GG