This quest starts at the start of Chapter 5. Despite a big number of bugs, we have managed to pursue the quest.

Your journal used to stop updating when you arrive at Varnhold. Head to town (or, if it had been flashed, visit the town in that area ), come to the guard and speak to Tirval. There may be three Distinct scenarios:

• If you tell the militia leader that she should deal with her people alone, then only the main initiator will be killed.
• According to the second scenario, Tirval will call you a fool, and the quest will be failed.
• The third scenario implies that you should kill the militia and Tirval which also leads to the quest being failed.

Anyway, you will not manage to proceed if you pick the first situation. Tirval will literally divide into two. The bug will likely be fixed shortly.