Ok, just checked it out. My bad. It has been fixed.
I just asummed that it hadn't been fixed, when, after the very first battle with Grutilda, I approached the place where the fountain with the cat and the skeleton is and all of the villagers, orcish, human, skeletal and feline alike turned hostile on me again. Didn't have the patience to complete the rest of the battles to verify the invulnerable orc was no longer there.
Thanks!