Glitched Custscene for Sidequest "The Tournament"

Time: 7/1/2017
Frequency: Constant
World name: Midgardsormr
Character name: Sion Esperan
NPC name: Esugen
Class/Level: Samurai Level 66
Party or solo: Solo
Area and coordinates: The Azim Steppe X: 23.0 Y: 23.4 Z: 1.1
Steps:
1. Speak with Esugen to begin sidequest "The Tournament".
2. Cutscene begins and Esugen says a line.
3. NPC appears, and runs up to Esugen.
4. Cutscene immediately stops and and I'm back standing next to Esugen.
5. Cutscene cannot be skipped, as the same thing happens in step 4.
6. I can continue playing after the glitch, but the quest has not been accepted and in my Journal.
7. Coming back at non-peak hours did not solve the issue.
8. Reinstalling FFXIV on my PS4 did not solve the issue.

I am having the exact same issue with this quest. Everything happens exactly as you describe with the cutscene abruptly ending after the other NPC runs up.

However, I am on PC - that this happened to both a PC player and a PS4 player suggests that it's extremely unlikely to be something going wrong within either of our systems.


Date & Time: 7/1/17, bug first encountered at about 4:30PM PDT
Frequency: constant
World name: Hyperion
Character name: Ciel Rosemont
Retainer name: N/A
NPC name: Esugen
Monster name: N/A
Class/Level: Red Mage lv 66
Party or solo: Solo
In-game time: Don't recall exact times, but have tried to activate the quest at night and during the day
Area and coordinates: The Azim Steppe X: 23.0 - Y: 23.3 - Z: 1.1
Housing: N/A
Steps:
-Exactly the same as what Sion_Esperan posted above, with two exceptions:
1. I have not reinstalled FFXIV. I restarted my my computer, but that's all.
2. One other small, odd thing that happens - after the cutscene abruptly ends, I am back in the normal game world standing next to Edugen with the quest not accepted, as Sion described. For a moment, the wrong music plays. The Azim Steppe area music will begin to play after the cutscene ends, even though I am in the Dawn Throne area and should be hearing the town music. This lasts for maybe 15-30 seconds, and then the proper Othard town theme takes over. This was consistent with day/night in-game time (at night, the night version of the Azim Steppe theme played, and the day version during the day).

- Type of internet connection/provider: Comcast cable

PC Specs
Windows 7 Home Premium 64-bit
Intel Core i5-3570K @ 3.40 GHz
8 GB RAM
Gigabyte/nvidia GTX 970

UPDATE: the quest seemed to fix itself. I tried it again, and it just worked. I do have a theory...

When it was bugging out, I hadn't yet done the level 66 main scenario quest "Naadam." It was only after I completed Nadaam that this "The Tournament" side quest suddenly worked fine.

Once the cutscene played normally, I noticed that the NPC who runs up makes mention of the events that occurred DURING "Naadam." So I'm thinking, maybe there's a bug in how the quest is handled if you haven't completed "Naadam" yet? Just a thought.

Of course, I don't know if this was the case for Sion_Esperan, or for anyone else who might have run into this bug.