Correct, hes associated with 3 quests.
https://wiki.project1999.com/Friend_of_the_Kin
You say, "Hail, Sentry Kale"
Sentry Kale says, "Ah outsiders, I have heard word of your travel here. Perhaps you wish to become a friend of the kind?
https://wiki.project1999.com/Spider_Legs_Quest
You say, 'Hail, Sentry Kale'
Sentry Kale says, 'Why come you to the home of the kin? Seek a home amongst the kin perhaps? Perhaps if you wish to prove yourself I may have a task for you.'
https://wiki.project1999.com/Velium_Retrieval
You say, 'Hail, Sentry Kale'
Sentry Kale says 'Another Halfling, in the great shrine? Perhaps the times have gotten worse than we had expected -- I wonder if I will need to reactivate my [sentinel] for further use in my stead.'
None of the above mentioned quests has a response of "You must prove your worth before I will discuss such matters with you". So unless different quests from the same NPC require different faction? (never heard of that, would be very weird to code it that way) then it seems bugged.