Can't Progress Blood of Arlathan Quest

I have the same problem and can't progress the game at all. I've tried repairing, reloading from different points, restarting the quest from the beginning, I even did the suggestion from another comment to run around in a circle three times before initiating combat. I can't get past this point. The second wave of enemies never spawns no matter how long I wait. I'm really bummed. The game runs pretty terribly for me in general (my computer meets the minimum, but not the recommended specs) but I've been muddling through anyway because I'm really enjoying it in spite of the glitches and loading errors, but this has broken it completely for me. Just hoping someone else has a suggestion to try.