I was parsing through some of the localization files and found an interesting bit. Not sure if it's new. Don't think so.

"The High House of Wonders! Temple to Gond, the Gearsmith and the Wonderbringer, the House is at the same time an elaborate collection of workshops, laboratories, and magicomanufactories - for what better way to worship the Lord of All Smiths than by making mechanisms in his name? Here in the Upper City, all manner of enchanted clockwork devices are forged and crafted, powered by spells, by steam, by conjured micromodrons - even, some say, by hellfire! However, these Gondian creations are not wonders for the sake of wonder, but practical contrivances built to enhance the lives of Faer�n's mortals and help them work beyond the limits of their physical bodies. Take, for example, the mighty cranes that line Baldur's Gates' docks, loading and unloading ship cargo with speed and strength far beyond the capacity of ordinary stevedores. These cranes originated in the workshops of the High House of Wonders, and are Gond's gift to the trade and prosperity of the city"

It mention "Here in the Upper City" and the High House of Wonders. This might be where Karlach was SUPPOSED to be fixed originally.