Has someone else found one day the tieffling balcksmith watched? All the area is red and i can't find any NPC in range :o
I generally had a problem with the blacksmith also related to pickpocketing. Steal a few daggers and passed my checks left his workstation and went behind wooden area on some rocks close to river. Probably about 10-15 ft. away and he just started spamming lines every one second none stop.
Besides that strange scenario he goes hostile with no dialog chance no matter what, at least for me so far.