The Shakedown Quest Help (Spoilers)

[LethalSaw]

Ok so I'm writing the entry for the quest "The Shakedown[orcz.com]" on the Wiki[orcz.com] so am exploring all the ways to complete it.

If I side with Burro and Kana and kill Elodi, the journal updates that the elf is dead, and the quest completed.

If I side with Elodi and kill Burro and Kana, the journal also updates that I rescued the elf, and when I go to the elf cave and talk to Elodi she thanks me and gives me a severed head as a reward.

However, let's say I resolve the situation through dialog - for example I tell Burro that Elodi is a deadly assassin and he lets her go - I get experience but the quest does not complete. And when I go to the elf cave she thanks me but does not give me the severed hand. So even though I did help her the quest is still marked as incomplete in my journal.

Not sure if this is a bug, or is as intended, or there is something else I need to do to complete the quest in that situation?