Quest mode freezes at the loading screen for me as well.
I've just started the game and I only have Merisiel and Kyra. I've tried going in with both characters and each individually. I've tried going in with all settings toggled on and off. I can select the level of quest mode, but when it actually tries to load the game it freezes on the loading screen. I've left it for a half hour before with no progress.
This is on an iPad mini MK862LL/A.