Grace (story related spoilers)

Soooo Grace is back. Except she's not supposed to be. I think.

This whole thing has been a mess, honestly, but strangely my game seems to be fine, just characters being where they shouldn't.

It started with the Magic Mirror. Once I had Pen, Miguel and Dingus in the slammer after the traitor reveal,the Magic Mirror started appearing in town. I thought this was normal so just ignored it.

Then we get to the post invasion story with Grace. She left on the early morning train going somewhere after being reassigned as expected. A week later things get hinky. I get the story quest for the Magic Mirror to be my servant and its accompanying story beats around the town. I get to the one with Qi and who should reappear? Yes indeed, it's Grace! Chatting away like she had never left.

I figured this was a timing bug and that the Magic Mirror story didn't trigger when it was supposed to and that Grace appeared just for this story beat then would disappear again.

Nope.

She's still wandering around town. Not only that but she has dialogue regarding Larry taking over her job! Wtf is going on here? Did her return story just not trigger or did Pathea forget the was supposed to be gone or something?