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So I don't have to take the orc home because I didn't do that.

good that you mentioned that, i forgot to add it
to be honest, i always brought him home i never let him go.. there are alot of interactions if you brought him home

so that's probably why I can't unlock Ste

I dont think it is related. 
follow the instructions and you will unlock Ste.. 
once you release the Orc, go do some side quests, then get back to explore Vicoria's cave, then go talk to her, (dont try to release Ste yet, he will be willingly go back to jail). get Arion to have his way with Vicoria, Ste will be released.. etc etc