Apparantly this bug has bin around since long, looking at posts about this.
The way it happens for me is as follows :
I was lucky enough to see this event triggered as i spawned in game. Logged out before dinner at the spot. So after dinner it was triggered, good. Only to discover one last villager does not respond and stays put. Hence the event won’t finish, hence the achievement doesn’t come through, hence no way to continue on my legendary precursor Dawn …
This event takes place at Fields of Ruin, in the top right of the map at Tanglerot Hills.
I’m running with a lvl 80 thief on the Blacktide Europe server.
At the moment of the event i was running solo, yet several other players were present aswell.