I've just informed the blacksmith that his apprentice is dead, and now he's got an odd icon over his head:
It looks like a blue asterisk or some kind of star. What does this symbol indicate?
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Sign up to join this communityIt means they have information for you. If you click on them and select talk, it should provide you new options you haven't seen before (not grayed out).
It means they have a new dialog or conversation that you can initiate. New topics will be in white text, and ones that you have already heard will be in grey.