Wulfren and me are old friends, I have played this wonderful mod many times. So this isn't a case of my having gotten lost.

What has happened: [spoiler for those who have not played ahead]

We are at the point where we have rescued Sigrid and I have slept on Laurenna's orders, been attacked by Ragnar's guards in the cottage, and slept again.
Wulfren turns up when I woke, and his dialogue is broken. Although he will join me as a (limited) companion, there is no dialogue to say that Laurenna has gone outside.

I have had a look around the internet, and it seems that this has cropped up before, but I haven't found a fix or a workaround.

I do have Wrye Bash, but I know better than to try to clean this mod with Bash - I wouldn't dream of it.
However, I do often launch Morrowind from inside Bash, so it may be the culprit having done something I am not aware of.

Does anyone have any recommendation here?

You could try to load from an earlier save, if you have one in your list on Wry Mash.

Also, contact Emma at her site, she is incredibly helpful in working out the most difficult problems.