Not that it is of any use, but I am stuck at exactly the same point as veldt described in their original post.
11 inert stones. Go into the portal and out, he still going on about talking to someone inside (not that there is anyone to talk to in the armoury!) Tried going back a few saves - still the same nonesense when I get to that point of the game. Tried smacking the git around a bit - no joy.
I really do not fancy restarting - particularly as veldt experienced it again.
The only thing unusual I have done is maybe triggered (and fought off) the attack on the homestead a little early.