Post Hotfix 8 this is still happening for me. I literally have not been able to play the game since Patch 3, and it's getting really frustrating.
The post 2 above yours workaround does seem to work from my recent test.
Go into the inn for first time slowly till Jaheira intercepts, get through her convo and hold your position if you haven't seen any initiative roll up near Dammons shed then all is good.
Quicksave for good measure and open map to get your bearing on where to quickly click for a Act1 zone, I used Goblin Camp.
Close map and move forwards to where you unlock Last Light Fast travel point, this should be far enough to trigger Ox/Dammon initiative roll and fight, don't hesitate when you see the initiative roll, open maps and click out to Goblin Camp.
Now go back to Last Light, if you got the timing right Dammon will be alive and well and the Strange Ox will have vanished (if Flanker15's luck applies the Ox has gone to Act3)