The only bugfix in the readme file for the Tales patch that might be related to the problem you're describing that I could find:
"Killing Karoug before transformation no longer breaks the Balduran's Island subplots. This would cause the plot to be unfinishable."
In other words, if you killed Karoug before he finished his transformation (into a wolfwere or a werewolf or whatever I would suppose) and do not have the patch installed it evidently results in some sort of major bugginess. Can't quite remember who Karoug is or where he is.
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