Done this in an Iksar Necro and Dark Elf Wizard using no illusions. You just have to be clever about it.
Every NPC you must turn in to is located near a wall or pillar you can get behind, open a trade window, invis yourself and then turn in.
In Najena, use the pillars in jail to block LoS.
In Felwithe you can use the railing on the fence I think, or maybe it's a wall I forget.
In Erudin you can use a wall.
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