I just wanted to give an update in case this happens to anyone else, they google it, and they see this for a solution.

For some reason on the console version, if you get to the Thorny Ground waypoint portal and fast travel anywhere before you do the Weresheep quest, the quest breaks. So you basically have to do it as soon as you activate that portal.

In my playthrough, I got to the portal and then went to the End of Time to do some bartering and upgrades. By the time I returned the quest had broken and the Weresheep wouldn’t show up.

I did a speedrun to get the trophy and here’s what I did - I made a scoundrel character and got winged feet and invisibility. I went from Cyseal (dig up grave to get Weresheep book near Church)—> Luculla Forest —> Hiberheim (defeat Boreas and go to his treasure room to get Weresheep parchment) —> Luculla Forest North (to get here, get any 3rd character (Bairdotr, Madora, etc & level up lockpicking to 5. Go into Loic’s Immaculate Church in Silverglen and pick the trap door behind him. It will take you to the phantom Forest bridge from Luculla Forest) —> Hunter’s Edge —> Zandalors House (get necklace for Phantom Forest protection) —> Thorny Ground Phantom Forest Waypoint —> THROW stardust herb near the tree & the Weresheep will come out & trophy will pop.

NOTE: I did not need to speak to the ghost weresheep you need to dig up in the portal room

Hope this helps someone!! Great game and hell of a platinum lol