I had the quest to talk to Watson in Katzenstein's Lab. My friend and I entered together, and he went ahead and talked to Watson. Since the quest moved on, I assumed that it counted. We completed the Lab, but once we had finished, my next quest was to talk to Watson again. Watson had vanished by then and has nothing to say to me. Do I really need to redo the whole instance?
I had the quest to talk to Watson in Katzenstein's Lab. My friend and I entered together, and he went ahead and talked to Watson. Since the quest moved on, I assumed that it counted. We completed the Lab, but once we had finished, my next quest was to talk to Watson again. Watson had vanished by then and has nothing to say to me. Do I really need to redo the whole instance?
Well since you've obviously left, yes. You talk to Watson outside the dungeon, on the rooftop, as is indicated on the quest itself.