I can confirm it happened like this as well. Did that cleric bracer quest repeatedly back in the day.
To my knowledge it was never fixed, because the quest dialog specifically links Zahal and Regis together... from allakhazam's:
Speak with a Gypsy named Lianna Ferasa in the Rathe Mts. Ask her what has become of Regis the Reverent and she will tell you that he was killed in the N Karanas by an evil man named Zahal the Vile. She says if you go kill Zahal the Vile, Regis' body will rise from the dead where he was killed along the NE tree line of the zone. She also asks that if he has her flute on his body to bring it to her.
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