Had similar problem with the Hag.
Perception check succeeded and surprised! the Hag, the cinematic kicked in, once that was finish I could walk right past her while she was hurling insults at me (not so nice elderly lady), no stealth. Lowered the cage with lady in, she won't talk to me until I had dispatched the Hag.
Hag offered no resistant's to being attack repeatedly by arrows from my Ranger, even when stealth checks failed there was no attack.
Could speak to the lady from the cage after Hag was dead, which continued that quest chain.