For the side quest "Building Bridges" in Gorhart you are tasked with fetching a Greater Healing Potion and returning it to Aery the Fae. I stole the potion from the alchemy shop. I was caught stealing and the potion is now designated as stolen. When I speak to Aery the Fae, there is no option to complete the quest.
So, can stolen items be used to complete fetch-type quests (or any quests for that matter)?