SOLVED BY SUPPORT
For anyone else who falls into this glitch, a potential solution is to have one player throw the over play away with teleportation to break the conversation state. However as both of my avatar characters were stuck in that state, Raze had to un-stick it himself.
Another solution (for those not on honor mode who have previous save files) might be to just reload before the conversation started.

I literally got a response for this in 16 minutes, and an unstuck save file in another 15 minutes.
God bless you Raze, and god bless you Larian customer service for still being on TOP of support for your titles while actively handling feedback and bugs on a new one.