After the fight where Dallis intercepts your ship, I ended up in a situation where Malady and Gareth were bugged out and still in the fight. I'm not sure of the ways this fight can go but I ended it by killing the cloaked figure (who I noticed was weaker than Dallis). On doing so Dallis transforms into a dragon and the fight ends. When back on the ship, Malady and Gareth will still be in a fight. You can get around this bug by casting some spells on them which will drag you into the fight as well (and then it ends).
