Finally got around the bug. I kept getting caught trying to sneak in the back, and since that was getting an auto-meeting with Loredo I didn't think it was wrong. I successfully snuck around back and eavesdropped on the sorceress and Loredo's convo, and then went back around the front. No bug after leaving Loredo's area.
Yeah, this is also one thing I made different, instead of getting caught, I sneaked until I saw the sorceress at the window. Maybe getting caught too early bugs the game... :/