Unfortunately, this bug will never receive a fix, because Bethesda does not patch their DLC. Also, they have long since moved on to other projects as was mentioned in the official statement in 2013 on their blog.
Apparently, there is a known bug where if you talk to the two Skaal villagers discussing the disappearance of the village blacksmith before they have finished talking, you may be unable to interact with Deor Woodcutter, which makes the quest impossible to complete. The only solution to this issue is reloading a previous save before interrupting their conversation and then next time make sure to let them finish before trying to interact with them.
Also, if either Deor or Fanari have been killed it will be impossible to complete the quest, because they are both required to start it.