Lately I had numerous pings about people not being able to find the Old Hag. Let me assure you, that this is OK and not a bug. There is only one brief option when you can through the dialogue have a chat about fields in the distance.
Exhaust dialogue options - it's there. And is completely optional, so you do not lose core experience.
After exhausting one of the dialogues and do not know where to get a thing - maybe check Hints in Pause Menu :)
All the best,
Olafs