So, doing the Man who waits quest, once you kill the reanimated golems, after speaking with the prisoner, if you proceed right to the top floor and report to Hallmaster, your quest proceeds as it should.

 

But, if after killing those golems you first go and speak with Azo on that floor and confront him about the things he did, he will ask you to say nothing to Hallmaster. If you refuse, he will turn hostile. After killing him and rushing towards Hallmaster to report about his misdeeds and how he tried to kill you, you will find the whole main floor hostile towards you and you won't be able to finish the quest.

 

Found that a bit strange.

 

 

There's another forum topic on this:

 

http://forums.obsidian.net/topic/72139-possible-bug-in-sanitarium/