When I went into the Luminos Bathhouse to do this quest, I got distracted and talked to the attendant to use the bathhouse. There was some sort of bug that kept returning me to his dialogue box. When I stopped talking to him my party was in bathing suits. I then went upstairs to initiate the quest, did all the talking and pickpocketing, then exited the bathhouse. The only items that were returned to me were my inactive weapon slots and quick items. Active weapons and worn items were all gone.
Lost a lot of gear and my last hard save was over six hours of gameplay ago. Would love to have this fixed if possible. Can't attach saves as they are over 5MB..
