Can't remember exactly mostly due to it not appearing in quest log (seriously, why have a log if not all quests are on it?), but the keywords that I do remember are Ly'ras, wood elves, village and it seems to happen in the throne room
So I'll just start listing out some quests and how they activate. Check and see is any of these conditions apply to you. "Aid for Lyras" is her recruitment quest which starts in Act I which I'm assuming you already did. In Act II she'll ask about going to Xas for the quest "Clawyn's Finacee". After that quest is complete you'll get another quest from her in Act II, if you kept her/she didn't leave, which is called "Soul Eater". Where you talk to Clawyn about going back to the abandoned village where she grew up in. And she gets psychically attacked by a weird demon thing. Those are the quests related to Clawyn. The only other event I can think of is where the Male PC has sex with the fairy called Primrose.I don't think that starts with Clawyn though, and it occurs after completing "Aid for Lyras" and talking to Ganriel. It's possible the dialogue you can't remember might not have led to quest, but might just have been flavor text or random dialogue/exposition. Let me know if that helped at all, if it didn't I'll try and think some more of what you could be remembering.
Edit: Could it have been one of the new throne events?
is there any mod that fixes the quest journal? It doesnt update all quests nor removes the already completed ones.
Nope, the quest journal is buggy as hell, and I don't think there will be a fix for it anytime soon.
It's probably been almost two years? Since I have played this game, when I last played a lot of the art was random and there was no consistent style, has that changed?
They devs have some more preferred artists nowadays. So although there is some different art styles, the variety of those styles has gone down, and the quality has gone up.