Vagary key item bug?

Platform: Windows 7
ISP: AT&T Uverse
Type of Internet Connection: Cable
Internet Connection Speed: 15Mbps
Date & Time: Mar. 27, 2015 11:30 CST
Frequency: Once for now?
Character Name: Johnb
Race: Hume
World: Bismarck
Main Job: Bard, Lv.99
Support Job: White Mage
Area and Coordinates: Outer Ra'Kaznar [U]
Party or Solo: Alliance with 16 members
NPC Name: None
Monster Name: Rancibus
Steps:

I killed Rancibus in Brash Gate but did not receive the key item. I do not have Leafallia access, so I cannot start a Vagary with Befouled Water. I had the Records of Eminence activated but could not receive the reward on kill. I don't know if it has anything to do with it, but it is probably the Leafallia access. I don't know if this key item thing is a bug or intended. Even though I don't have the key item from Brash Gate win, I can still see +1 feet at Monisette (it must be title based).

You wont receive the key item for clearing zones unless you have gotten the cut scene from Laefallia when trading the Water to get KI.

Okay. Is that intended?