At some stage, the castle servants go on a strike because of "working conditions". Note that this is a medieval game with a medieval king (despite being a pretty benevolent and hapless one) who is not only having a bit on the side with the serving girl (who is cheating on him) but actually has a will naming her soon-to-be kid as his heir. The nanny goes on a rant about the worker class, etc. All the usual leftard union stuff.
If you don't resolve it, you will come back to a castle where no one is able to work because they are hungry. Your closest companions, which includes Iolo and Dupre, who have been wandering the wilderness with you for months on end, are incapable of cooking at all without the servants. Yeah, the Avatar has an assload of servants trailing behind him when he goes on a quest to save Britannia the last 3 times. Thing is, since they can't work, you can't get any training, which by that time, shouldn't really be a problem. The problem is one of the characters (Nystul, IIRC) can't do his thing, which is vital to the main quest. You can't complete the game without him doing something and he won't because of the strike.
The bug? The conversation to resolve the strike (in the servant's favour, of course, because fucking spector) disappears after a while (IIRC it is when you go back through the gem and complete the next segment). So unless you have a save from before the strike, you are fucked. Restart the game.
The thing is: the whole scenario is completely pointless and doesn't add to the game at all. It is just fucking spector waving his cock around, just like he did in U7:2 when his expy goes on what is essentially a pro-communism rant. This is something that fucking spector does in real life, not just in games he's touched. There is no mistaking his hand in the whole thing.