On my 1st playthrough, for some reason (a bug?), humans also started to attack me when I headed to the village's fountain after the first fight in front of Grutilda's HQ had finished. On my 2nd playthrough it didn't happen.
After you kill all the orcs inside and around the village, you have to talk to a non-aggressive mountain warrior to conclude this quest. On my 1st playthrough, near the wizard's house, there was one that wasn't aggressive towards me for some reason. I talked to him and the quest got cleared.