Hi there,
Thanks for reaching out!
Please ensure that the quest item needed to progress wasn't placed on one of your other characters as some users have reported this happening in the past.
Also, please check to see if any of your characters have an older version of this questline. If so, be sure to abandon it. On top of this, please ensure that you have available weapon space on each of your characters.
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Yup, the item was on another character. Thank you!