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Noble refers to duchal palace as his home with own guards if talked to three times.
Okay. Found this bug doing a quick stomp through ready for upcoming BG2 patch testing.
1) Start chapter 7.
2) Enter area AR0108.
3) Speak to the nobles in room adjacent to entrance.
4) Observe the last dialogue about guests and guards on door (from I think the mansion in Beregost)
Oh so minor bugs these days...