Works fine for me... also yes, the all fighting all is definitely intended (besides perhaps the lovers killing each other).
Did you verify your files. That invincible orc sounds iffy. Is he named? Did you see the cutscene of them playing Rock, Paper, Scissors and one of the mercs dying before starting the massive battle?
all files validated.
orc is not named. just "elite orc fighter"
there was no cutscene before the argument starts between grutilda and the human leader.
EDIT: Ah, I see what you mean now. not a cutscene really, but a dialogue where one of the mercs dies. Nope, had not activated that before the fight. Have now.
EDIT2: No change. same orc is immortal, regardless of making sure that little exchange triggered or not.
the all fighting all CANNOT be intended, as to finish the quest, you have to talk to one of the human mercs after all the orcs are dead.
you obviously can't do that if they are hostile to you.