Yep - you'd think they would be used to Druids shapeshifting, but nope! I've broken cutscenes and had NPCs run away from my Druid, and had to reload.

Reloading the fight at the gate and NOT using Wild Shape fixed it for me, but now I am avoiding using Wild Shape around NPCs I might like to talk to. frown
Although I did become a cat for the kids, and it didn't break everyone else's reactions this time.