Frostbite's Fish
 

The quest in North Qeynos is bugged in which one of the Koaindl paths in and out of the water making him un attackable. The other fish doesnt seem to drop the quest item

Fish out of water.. needs more work. Some underwater npcs stay underwater, and others chase you on land, or bounce on their Z axis. Work in progress.

As far as the fish not dropping quest item, it doesn't drop it every time.

Roger I was able to figure out a way around it. Thanks!