Unfortunately, this doesn't seem to be fixed. I have tried both a save just before and after meeting him, nothing changes, he still stays in the mill. Haven't tried to roll back earlier but given how much time that would consume and the fact this is not even mentioned in the patch notes, I'm not too eager to invest the time unless it's confirmed.
It's strange though, given the issue has been reported almost right after the previous patch, so close to two months ago.
