Well, 1.3 patch fixed This bug 
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Nah. Sure I can complete the quest, Vagabond said that he can’t give me money for this item - but I can sell this in the mill. Unfortunately this item exists still in my quests items so it is unsellable… Anyone has solution to this?
Notice that every quest item stays in your inventory.
Yeah. But Vagabond said that I can sell this item in the mill. Otherwise this quest item stays in my inventory and is marked as stolen. Each time when I’m checked by guards, they are saying that I’ve stolen items…
Was this issue fixed yet?