GuiardoTuneweaver
Staff Emeritus
The quest should increase your faction with Athica regardless of if the NPC was bugged to be on the wrong faction. When you did the turn in, did you get the "Your faction with Athica has increased" message? If so (which I would think is the case), your faction did indeed increase with Athica, and you'll see the effect when the NPCs are returned to their proper faction.