This happened to me in this way: Woke Art. Went to Lakeshore. Got my ass kicked. Went to buy more stuff. Ended up going back to Emerald Grove from Last Light Inn to see what that vendor had. When I went back, Halsin was no longer at the lakeshore. In camp, his dialogue went back to the prompts prior to doing the Wake Art quest. Went back to Art. He was still alive. Went back to Halsin. Still old prompts. Had to reload old save and not travel to another region to keep Halsin at the Lakeside.

I feel like we should be able to travel where ever we want without losing progress? I may post this as a separate thread, as you have done some things differently than I did.