Bandits in Farlorn's Hope 2

[El Rey de Pinguinos]

I killed the bandits in what used to be the refugee castle in Farlorn's hope, and got a weird dialogue with Yria lecturing me for killing the leader - the only option I had in a forced conversation.

The wiki and an older thread both say that Catherine, the lady you could talk to the first time, was supposed to be there, and Yria was supposed to kill the leader herself. Is this a bug or did that get removed?