Game is saying I have smoke powder when I don't see it?

[PK SPACE JAM]

Trying to blow up the wall to find Nere, my charactyer said he had explosive powder and they keep telling me to drop it on the wall, though there is no powder in my inventory and i have no idea what is going on

[Night Writer]

So, the game tells you something is there, and you know its not, but it is. Because the game says so. But you look and there is nothing, but there is something, but you don't see it. It tells you to look, and you do, but you do not see it correct? Am I following? Because I want to make absolutely sure that what they say is there is there even though you are saying it isn't there when it absolutely must be, because they are telling you it is there, but with your own eyes it is absent from the general vicinity, of your inventory. Am I understanding that correctly, that it isn't present when it is?

[majinx137]

Im having a similar issue. I cant find it in my inventory or any of the companions. The quest has gone from my log and the gnomes are telling me to use the powder and to put it down etc etc. i cant find it anywhere…

[LordNibbler]

As it is certainly mentioned somewhere in this over 6 months old thread that you successfully excavated...

For the game to say that you have it, it counts when you have either Smokepowder Bomb(s) [some are hidden in the same Grymforge area], Smokepowder Satchel(s), the Runepowder Vial [given by the gnome] or the Runepowder Barrel [can be stolen from the gnome before talking to her] somewhere in your inventory. I guess it also counts if you have one of these things in your camp chest. All of these can be used to clear the rubble, though it needs more than one if a smokepowder variant is used.

[AngryFrog]

theres a secret stash room somwhere around there with treasure and more explosive powder. You set it down close to the wall between the rubble or it will fail. Had to restart my game to do it again

This was months ago. I have no idea if the patch broke it.

You should see the bag put down and a all the NPC's back away in a scripted scene
If that doesn't happen, you didn't place it right