Fixed the issue, or at least found a good workaround:
I created a copy of the character which was set off-stage in the INIT section:
SetOnStage(CHARACTERGUID_UndeadTeresa_001_a2286b44-f384-423c-88d4-2a5fc6c217e6,0);
Then, after the dialog I removed the character that was involved with the conversation and added the copy (In the KB section):
SetOnStage(CHARACTERGUID_UndeadTeresa_5283cab8-a5c5-4a9e-898e-028e77e40d22,0);
SetOnStage(CHARACTERGUID_UndeadTeresa_001_a2286b44-f384-423c-88d4-2a5fc6c217e6,1);
You can briefly see the disappear and reappear, but its much preferred to an enemy who runs from combat.