My version seems to be 1.1.1 version and I think I also encountered that Elven city bug in mission 3 as well. I was really confused. I did not know what happened, or what trigger it so I did not know how to write a report about. So thank you for your post, you wrote about the problem better then I would have. Thus allowing me to state I have also had this encounter in the 1.1.1 version, meaning you were not alone in encountering this.