First thing I tried, retried it repeatedly (including right before writing this reply), does not work.Thanks.
Apparently, there is a problem indeed. The value for the quest seems incorrect (i.e. 36 instead of 37).
Anyway, a simple solution (at least in your case) seems to go once again into the princess house (during the day, not in the night).
You'll get the message "I already have a map...". More important, the quest value will be also updated internally to its correct value.
Go then to the mountains to encounter the giant and it should be quite OK now (i.e. message "Maybe the witch can help?" and possibility to let the witch join you in your quest after that).
The one thing I DIDN'T consider previously is that I'm playing the compressed version, so I'm currently downloading the normal version to check if the problem lies there.
Edit: Yup, that did it. Why is "I'm playing the compressed version" always the last thing you think of...
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