silmwaren: I think I have discovered and resolved, the Bacatta, in the tavern issue.

There are two versions of the game, and I think that is probably causing the issue.
There are 2 conf files.
1: dosboxlol2_3dfx
2: dosboxlol2_single

You also have to setup nglide.

So open nglide setup menu. And setup nglide, to the way you want it setup

Exit the nglide setup menu.

Now go to both the conf files and open both of them.
The only line you need to change is the glide setting.

Set both conf files to true.
Close and save both files.

Open lands of lore 2.
Enter cantina, it will now run the entire scene.
Making these changes, may cause the game to be played, In a window. But, it can be changed back.
So after you, finish the cantina scene, save and close the game.
If you want to go back to full screen, then reopen both conf files again, and set glide back to false in each file.
I think that somehow the game is glitching because of these two files.

dosboxlol2_3dfx
[glide]
glide=true

dosboxlol2_single
[glide]
glide=false

Naynomura: How can I fix that on Mac?

gorkha: It is great to see someone has looked into this problem as I had to dust off my old pc with win98 just to run the windows version from CD to get past that place.
I'll be sure to leave a comment next time I play it.
--
I guess fixing the problem on MAC should be similar if it runs in dosbox. Did you try?

slick101: I have Cantina problem as well on my OSX 10.10 and even despite that it's dos box I cannot find config files to apply the solution. Could you help me with locating the file?

Gydion: No, all GOG DOS releases use Boxer Standalone not DOSBox. On the .app Right-Click - Show Package Contents then browse to the .boxer and once again Right-Click - Show Package Contents. The files you want will be in there somewhere. They may be different files you need to edit though.