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I found the wand, and used it to kill Ellhrah, to complete the quest.
But when I return to the village everyone attacks me, including Nabb!
Is this quest bugged?
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I think that's to be expected, since you will have made yourself unwelcome with the Awakened by killing Ellhrah. Nabb is a spy, so he probably has to act as though he's with the Awakened. Try going to Kazg (Takers village) and see if your relations with them have improved.