UPDATE
Nevermind. I solved the problem.
I put the sword into Lord Volymr's inventory, exited inventory, then went back and took the sword from him. The quest update window appeared before exiting the inventory window.
First, I had tried dropping the sword on the ground, and then picking it up, but this made the game crash....
If anyone finds themselves in a similar situation, I think it's COBL that allows you to move quest items.