Cannot Progress Quest: Ground Quest Loot Dissappear On Death

I understand the remove items on ground on death. However one of those things should NOT be a quest item. That should remain on the ground. If you dont intend that, reset any quest encounters associated with the death.

Secrets in the Dark. Died as rust king was killed. Upon respon, quest item does not drop.

Completely blocked in progress without knowing how to resolve.

Resolution, Recreate the instance. This isnt properly communicated and leaves the player feeling lost and helpless.