[Bugs - Damage over Time issues]

Thank you for keeping us updated BMac!

[Possible Bug in Sanitarium]

When it first happened to me, I had the same state as FutureProject, where the NPCs were there but frozen. The room with the kids they were all just standing with their arms out (kinda creepy). After I reloaded and didn't interact with Azo at all after dealing with the North Ward, I went back downstairs and the NPCs were all gone, and the kids started rushing me and attacking. There were a couple lootable bodies around the area. Then I talked to Azo and didn't provoke him into attacking me, and everything went fine. Seems like that's how the encounter is supposed to play out, so I would suggest just not picking an option that starts a fight with Azo.

[Possible Bug in Sanitarium]

I ran into this same issue. Fortunately I had a save not too far back, so I re-did everything and just avoided talking to Azo; made it out of the basement just fine.