Having a strong suspicion of that this bear was Haslin, I riled him up by getting those goblins to throw some sharper rocks at him and then joined in so I could upset a certain somebody in my party further. After the gate was knocked down from a mad bear a fight broke out with the goblins on my side.
Throughout the fight I never once took a hostile action against Haslin however he continued to remain hostile towards my party, during the fight I watered him to get rid of burning to keep him nice and healthy. I was immediately attacking the goblins from round 1 and they didn't change their aggression either, after killing a few of them I would also think they'd stop being friendly.
Once it was just my party and Haslin I exhausted my level 2 spell slots trying to get him to calm down by command halting him and continuing to not take hostile actions.
With that not working I proceeded to knock Haslin out in his bear form and he wasn't able to be interacted with. I proceeded to use all my healing spells on him, he remained knocked out and unable to be interacted with.
At that point the interaction itself was broken and I could not proceed without just killing him.
No journal update either.
Some sort of dynamic aggression is needed, it felt like the planning I put into that encounter was wasted when I had to save scum it because I was forced to either kill a storyline related character or leave the quest in a broken state because of broken aggression mechanics. Only at one point did I see a goblin get suspicious of me after I stabbed him in the gut 3 times.