Don't have any issue with the game referencing events and characters of previous games, because it will be a part of exploring this game and world.
It's when you get, dialogue options like this:
Random NPC you just met "Just like when we raided the circle mage college eh PC"
1) I remember we stole the circle mage's circlet, what a laugh that was
2) I find it hard to recall
3) I say nothing.
I just get pulled out of the conversation, such a tacky way to make a reference about something that the developer hopes you remember choosing to do, even if quite possibly your audience didn't play the game.