mehzz

Update: I found a workaround. Go ahead and try it - it may help you too. Just, maybe create a new save file in case it doesn't. I wandered and found a few more chests and finished up the couple of open sidequests I had. Thought, well, maybe going back will have changed things. It didn't. I went ahead and initiated the peaceful solution dialogue again and ran back through the door I came in. Run back a bit and they lose interest in you. My companions did their dialogue comments and we left the way we came in. I moved forward in the quest, talked to the ambassador, talked to the Mermaid's Den girl, then went back Ygwulf's room. It was now empty, I could loot all the chests and things, and could exit through the correct door using the key. Hopefully this doesn't come back and bite me later when they patch it.

An Untimely End - Track Down Your Killer Stuck on Ygwulf, peaceful solution. Tried several times - he hands over items then attacks once exiting the dialogue. Companions can deal damage (but not enough to kill him) but cannot perform special actions. I can deal zero damage to anyone in room. Tried rushing the door to exit, but no option to use key (which I did receive). Tried taking the path to kill him and quest appeared to proceed normally. I talked to the ambassador but didn't attempt to go further. Would prefer to take the other path so went back to the save that's right before opening the door to confront Ygwulf. Will be following for updates (hopefully a timely patch or I'll have moved onto other things by then).