I found it. It is part of particularly tricky quest that can end in the removal of Zephyra from the game. I completed the quest and retained Zephyra and the bowl but I'm not confident that I could it again. That is to say, I don't remember all of my response and which ones had meaning.

Ok, I've rushed through it multiple times, and here's what i've gathered.

Spoilers:

1. After you finish act 2, after some time passes, Zephyra will need a new paint brush. Wait a day, then go looking for her in Aliron.
2. Get trapped in the illusion and run through the dialogue with the person inside. PAY CLOSE ATTENTION TO WHAT HE SAYS.
3. Get the knife and do what one does with a knife when trapped in an illusion.
4. DO NOT KILL HIM! As much as you may want too, if you invested resourvces into Zephyra like I have. He dies, you lose your precious fox friend.
5. Go to the church with another large sum of gold, and have a fake bowl made. (Thank you so much Deziki, going back to the church never crossed my mind.)
6. Wait three days and this choice matters. If you give up the bowl, you get Zephyra back safe and sound. Keep the bowl, and you've doomed her at least in this point of the game. Give the fake bowl, and (i'm assuming it's an auto pass, but having a decent amount of charm couldn't hurt, who knows, they may make you pass a charm check in the future.) And you get to keep the real bowl, and get Zephyra back.

BONUS: If you save Zephyra and unlock an extra dialogue from the illusion, go talk to Myr, and have a heafty amount of gold on hand. You'll get a dungeon you can clear, meet a new NPC, and assuming you're not selfish, a much better item.  100 bonus exp is a worthy sacrafice in my opinion.