In numerous quests knocked out seems to count as dead. I wonder if it's a bug, or an oversight (which I assume should affect how easy it is to fix)
in a certain act 3 quest:
when knocking out captain grissly and then killing the hag, captain Grisly is considered dead even though she is alive after the fight, and seems alive when I examine her. This case seems like a very simple fix, for example, since it's obvious she was under a spell, so she should wake up and be thankful. Should be a pretty straight forward outcome.