Vrald's Lost Brother Quest

I encountered a bug on my lvl 78 shaman Hutelin while doing this quest where I killed an imp that had an item that I needed. But when I looted it the quest did not update. So now I can't give the item to the Oracle of the Three Oaks because she'll just give it right back.

Are you sure you looted the Idlegrime Spore? And you did hail the Oracle before you fought the imp? cause if it was a leftover imp from someone else's try then that first hail could be a step your missing.

First I would act like your going to hand it to your merc or pet so the trade window opens, but don't hit trade. Instead hit cancel and it will put it back in your inventory. And see if that updates it. Yes, this works, I do it all the time on no trade items for quests etc.So long as you don't hit trade then it won't error out about it being no trade

Another thought is to maybe destroy the one you got and group with someone who has not done it. Then they can hail the Oracle which spawns the imp. The imp will drop enough Spores for everyone in the group

There's a location update as well, inside the imp's room so it's easy to miss it and just kill then loot won't work.