well after the thief bumped into you, and the lady that got her stuff stolen asked you to chase after the thief, there is one way to go, which is to chase the bandit, he stood below the tree near the lake west of the forest, I think there is nothing else I could do. but will try to talk to someone else first.
cannot press menu, cannot do anything else at all, he just running aimlessly, and all I can do is fight him again and again, but he will defeat me in 3 hit while I couldnt even scratched him with my 3 hit, after defeat I can only fight him again, not able doing anything else.
tried to talk to everyone else before chasing him but nothing happened.