I've seen several posts for the bug you noted. The one I'm experiencing is different.
I have been told to ask the Headmaster Ethelmoer about Azo, which is the conversation where he gives me the key to go back down below, but I can't talk to the statue anymore. I can click on it, but it doesn't open a dialogue. It's essentially broken the game for me. I went and did all the other quests I could and came back to check this one a few times, but it wouldn't let me talk to the statue.
So, I'm frustrated, because i like the game and would love to see where it goes in act 3.