This quest is bugged. After I beat up Thomas a dialogue with Matthew and Fritz automatically triggers:
At the end of it I can choose or select an empty conversation spot, with no words in it. If I select it Henry starts rambling about Matthew and Fritz getting in troubles with somebody in the tavern, something that makes no sense and it’s completely disjointed from the A Friend in Need quest. If I try to talk to them before the fight with Thomas, this wordless conversation option does not appear. This conversation finished with the option (this time with regular words) of Henry that can let them off the hook or giving them “one more chance to behave” which again makes no sense with the current quest.
But that’s not all. After I found the scarf looting Thomas I persuade him to leave the city, then the quests updates to “Talk to Matthew”, but when I talk to Matthew there is no conversation about this, the quest ends instead. But the journal says that Frizt and Matthew are angry with me because I did not allow them to get their revenge with Thomas, something that instead happened. Moreover Matthew and Frizt leave town, the innkeeper in Ledetsko says that they are at the Glade inn now.
It makes no sense since I persuaded Thomas to leave and they should have been fine at the mill and Matthew wanted to court Jane. Instead they are angry at me now and they left, plus there’s the weird wordless conversation option that becomes available after beating up Thomas. I hope this gets fixed in 1.7 because the whole chain seems to be pretty broken and confusing to play.