I can confirm that he is working.
I have killed him 8 times, and gotten 2 dresses and turned in for 2 earrings as of this past Sunday and Monday.
About 4 hours for a dress Sunday, and Monday was less than 2 hours.
I was at location 10 on the map, and at the time there was a dead monk's corpse next to the spawn point.
Keep at it, it is possible!
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