I figured this was a good opportunity to try and solve the mystery of the quest, after it's been 5 years or so that this has not been fixed yet.
So after talking to the strange dead body and selecting yes and reading through it all(though you can do it again after), I did the following:
Backtracked to the first floor.
Went to every location
-202, 25
-190, 160
-164, 53
-133, 183
-139, 257
Did the following:
-Wait there on each one for 10 minutes
-Wait until two hide animations play then a reveal animation play
-Walked around the dungeon to each location until hide animation plays
-Kept walking on it, triggering multiple hide animations.
No dialog box pops up at all. When I go back to the chief, still no indication of finding at least one sword.
Edited by MaronaPossessed, 04 January 2020 - 04:05 PM.