Just a forgotten remnant from very old Early Access days back when Shadowheart wasn't even rescuable from her pod (until options to do so got patched in sometime early 2021) and when Mizora's story was about Wyll rescuing her from goblins that abducted her, which explained the dead goblins next to Gale's portal (along with Mizora's actual pod smelling of sulfur, which allowed us to question Wyll about it by passing a check).
- The elf part is always referring to Shadowheart; who at the time could only ever be found north up the beach banging against the door. No new lines were added to account for her being unconscious if she was rescued.
- As for the beautiful woman; although 100% proof doesn't exist anymore due to extensive Wyll & Mizora's rewrites for full release (unless one asks the EA writers directly), it pretty much implies it was Mizora because the only two attractive women who were present at the site with other parties involved were Mizora and Karlach (though she was just a placeholder template at the time). Considering how mesmerized the fisherman was by the woman's beauty, someone as luscious as Mizora is the only logical conclusion here since she did in fact go West (with the other goblins).
It's similar to other outdated Early Access remnants such as Ragzlin yelling "Crush him!" to a female character, the goblin warlock at Minthara's party referring to the Absolute as "Him" or the party commenting about someone climbing that hole in Grymforge's kitchen area despite Larian patching that entire wall up for full release.