I should add, went back to the Luminous Waters area just to use it as an inn . . . and was brought in, fully armed and armored, where I found myself fighting Tola and the rest of them. Having killed them and obtained a journal, I figured I'd go back outside, and then in *again* (so that I could finally add a missing party member).
That time, with no one else alive downstairs, I walked in nekkid, as a bath attendant. Still can't use the inn.
I've gone back to the Director, and NOW he correctly triggers. I would suspect that you could try pickpocketing the . . . nekkid dude . . . for his not-at-all-waterlogged journal of infamous deeds at the bathhouse instead of killing everyone, but I have no idea why anyone would think to do that.
I just wanted to bump this up since I also got stuck on this quest. I'm not sure if the quest is bugged due to the progression of events, or cuz it doesn't let you advance without the ledger.
I had already killed the slavers for Aeldys > went and destroyed the adra pillar on Poko Kahara > did the Dirty laundry quest. Then I went to the trading co. headquarters to turn in the quests and stopped to walk to the Governor first. I tried to tell her about finding the expedition on Poko Kahara, and she stopped me and took me to talk to the Director. He then acted like we never met before and gave me the same speech as the first time I talked to him. When I tried to turn in Dirty Laundry I also got the "About the bathhouse job...," loop.
I did what Myetel suggested and went back to the bathhouse and pick pocketed the accountant. Once I got the ledger and went back I was able to tell him the info I learned and turn in the quest.
Sadly not a fix I can use... I returned to the bathhouse, but it's business as usual and the contact won't talk to me again, so there's no one to pickpocket for a ledger.