I believe this quest updates once you enter Ezra’s Library, but you can spend the whole confusing 5 minutes of “what on earth have I done wrong” wandering around IN The Last Archive until you find Pannion’s Study. Once you find that door, it not only updates you with “Find Pannion’s Study” but also it then tells you that you’ve finally “entered” (while actually having just left) The L:ast Archive too.
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