I have no problem in killing him or the mindflayer. The mindflayer had a simple gem like Jade or something (looted without issue) but Zhalk on the other hand just won't let it go. The text in the chat box says it was looted (sword or mail) but it Never is in the person that loots inventory. Not sure where the confusion is. I mentioned that it is stated to go into the individuals inventory (Shadowheart picked up E. Blade...Shadowheart picked up Scale Mail) but when I check their inventory it is not there. I even have the screenshot of it on round 7. I do not run any mods, so that isn't a factor (I probably should have mentioned that).