I'm at step 6, before getting the coin in the fountain so I've already done the gravestone stuff. The only book in my inventory I can read is the obituary book where you learn who the boatsmith was. It won't let me skip step 6 and go to step 7.i had some issue with that. ...i found a book in my inventory and read it...then i unlocked gravestone to interact
I'm not sure if I still don't meet a pre requisite for this quest or if I screwed myself over.