Quest Issue: Dain Frostreaver IV eating quest items

[Colgate]

Dain seems bugged atm, tried turning in my Dirk of the Dain today while max ally and he ate it with no response, and he doesn't give me a Declaration of War when i say the correct phrase

we've had multiple people lose their Dirks and ring 9 turn-ins with the appropriate faction in the past few weeks, and i've heard of it happening a lot on blue as well