That works as intended. The dialogue starts when player clicks on the stairs.
Or do you mean, that there is no dialogue at all?
There is no dialogue at all, but the game does treat it as if there is. The inventory and arrow to leave the screen disappear and there is nothing I can do except closing the game and loading a save (or starting a new game).
It only happens if I click on him after getting the shave and boots, instead of clicking directly on the stairs.