I've just recently used the Level 50 Elixir on a wizard. I don't know if this glitch is happening because of that or if it's the game itself, but several quests within Wizard City show Grizzleheim-Austriland as the turn-in location for quests. This happened earlier and I didn't think to get a screen shot, but it just happened again so I grabbed it.
Because there's no way to attach pictures, I've uploaded it to Imgur: (Thank you -- I have seen your picture, but I must remove this link as pictures are not allowed per the rules ~Dworgyn)
I'm standing in front of her in Wizard City, and the quest DOES direct me there, but its' location is mislabeled.