Volkmar's conversation is really outdated. It mentiones Volaunt as the current captain and Quilby as the current lord mayor in the conversation given once to new characters.
His quest is broken as well. The transition to the QA doesn't work.
It is clear that Volkmar is a died-hard Quilby Loyalist.
The quest is a prank he plays on portal rats and new adventurers.
The Watcher in Muskroot's tower is trying to deliver a letter to the Aberdenn in Mistlocke. When asked about the Aberdenn, he says they are headed by Arthur Aberdenn.