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When venturing to learn appraise, at Holyhead the blacksmith told me to go get studded leather sleeves, from which I had on my person at the time. When trying to continue he said to hand them to him. Once I did he put them into his stock as was per agreed but then still asked for the sleeves as if I didn't just hand them to him. I had to keep buying them from him and handing back to try to fix it to no avail.

You stop using studded leather sleeves.
You give studded leather sleeves to the blacksmith.
You say to the blacksmith 'yes'
The blacksmith says to you 'Well hand it here then.'
Item Price
1) studded leather sleeves 4gp, 1ep, 6cp
2) a simple broadsword 3pp, 1gp, 4sp, 1cp
3) a blackened bastard sword engraved with a skull 4pp, 4sp, 2cp
4) a simple helm 13pp, 1ep, 1sp, 6cp
5) a simple breastplate 39pp, 1gp, 1ep, 4sp, 9cp
6) an ornate steel coif 60pp, 2gp, 6cp
7) an exquisite steel light hammer 92pp, 1gp, 3sp, 9cp
a serrated poleaxe 93pp, 1sp, 2cp
9) an ivory-white steel greataxe embossed with black a 98pp, 4gp, 1ep, 1sp, 6cp
10) a turquoise red-feathered steel heavy mace 103pp, 3gp, 1ep, 1sp, 5cp
11) a shining breastplate 161pp, 3gp, 1ep, 3sp, 3cp
The blacksmith asks you 'What can I get you?'
The blacksmith says to you 'Here is your change, 4 copper'
You buy studded leather sleeves.
You say to the blacksmith 'yes'
The blacksmith says to you 'Well hand it here then.'
You give studded leather sleeves to the blacksmith.
You say to the blacksmith 'yes'
The blacksmith says to you 'Well hand it here then.'
Quest Journal for Thaelyn:
You are learning how to appraise weapons from the blacksmith in Holyhead.
Get studded leather sleeves for the blacksmith.
You give studded leather sleeves to the blacksmith.
You say to the blacksmith 'yes'
The blacksmith says to you 'Well hand it here then.'

It appears to me that this quest works fine, but that there are now more studded leather sleeves that once existed. Therefore he doesn't recognize some of those new ones.

Or were you hidden or invis?

I was visible as I don't have the skill to hide or go invisible. And I used the studded leather sleeves I was wearing at the time instead of venturing around for a pair.

This quest has been updated on the test port and will be updated soon on the game port. Updating this quest made me think of this recent comic.

Updated on game port. QLOG will provide guidance, but this shouldn't break the quest for anyone.