Well I have now build her room and got the next quest with her, searching her whistle, while the questlog still shows sidequest 1.. like I said, I did it originally and after dying and retrying it was gone. Also another user in this thread asked where that circle was gone because he also ran into that bug.
If I didn't already do the quest and knew what it looked like you might be right, but I have done it and can tell you that the circle just now doesn't pop up, so it's impossible to do the quest. You can see me standing there on the screen next to where it's supposed to be.