You can do the "Change your mind about spending the night with Zharah/Zharat. Depending on the dialogue, you can either flee the exotic encounter for 1000XP or anger the lizard courtesan for 3000XP. After which you can talk to the lizard with a new character and pay another 100 gold to Lovrik to try again. So you can gain up to, 4000XP this way" Part with Fane's shapershifter mask to get even more XP

To get the dagger and extra dialogue as an Undead and having him/her fall for you, you need to have your armor on a companion char, and equip it before getting out of the bed. Otherwise everyone Knows you are Undead and it skips all the extra dialogue options, but he will still fight for you.

i feel like they missed a plot point with this encounter. when they storm in on me and declare they're working for lohar, you don't get a chance to confront him about it when you go visit him, if you kill everyone. i really wanted to pick a fight with him and gloat that i killed all his dudes single handedly. beast doesn't seem to like him very much, so i assume he's a villain. i need a good excuse to kill him, but the game isn't reciprocating those role playing emotions with me, as there is no dialogue options to say 'what's up with the hooker trap?!'

Is there a difference of when the game says your world explodes … “in bliss” vs “in ecstasy” ?

So I kind of did a combination of the suggestions. I gave all of my equipment and gear to one of my companions, making sure to put all of my specific equipment I'm going to put back on into a backpack. Then I went into the room initiated the dialogue said all the perfect things to get her world to explode, then slept with her to be awoke in the morning by the burglars informing me they have stole my stuff, my stuff is nothing. After going through the dialogue in realizing I could peacefully tell them to take my stuff, nothing, and be gone. And it works they actually just take off and leave the room. The prostitute is still alive we hanky panky one more time and I have to go find my stuff, of nothing. So no joke the game actually made me go down into the arena to the Lohar guy, and steal my stuff back. Now this is funny cuz like I said there's literally nothing they stole but the computer thinks they did. So after going through the hassle of having three of the characters get into dialogue with everyone in the room, I used the last character to open the bag, presto quest completed. And what was in the bag nothing, because there was nothing in my inventory for them to ever take. Silly game

I did this quest and my main toon is Ifan, and they all came running away after knowing who they're mugging. I didn't expect that lol

on definitive edition, if you refuse you get 1000 but if you make her angry you receive 3000 exp

I didn't try to replicate it, but you can actually (maybe) do this without getting your things stolen or fighting the thugs.
I took off my armor and swaggered in with my bones on full display (undead).
The lizard immediately got excited, slept with me and then.. nothing. Still had my gear, no thugs and I got the lucky charm buff. I loaded my save after that, so I'm not sure if that can break the quest.

If you just want to complete the quest normally without cheesing the fight (I just wanted the lizard to stay alive, which was impossible with my then current party), here's what I recommend.
1. Open Lovrik's inventory with pickpocket. You don't need to steal anything, just open it.
2. Spend the night with the lizard.
(2.5. If you are undead, send over some armor and equip it while you still lie in bed to hide your undead status.)
3. Let the thugs take your stuff
4. Kill Lovrik. By pickpocketing him first you have changed his standard loot to vendor loot.
5. Find Lohar and he will give you a task to find a dwarf.
6. Go to the house, explore it and you should find a letter talking about a ritual.
7. Return to Lohar, give him the letter and agree to continue looking for the dwarf.
8. Ask for your stuff back.

So I found why Lovrik needed the money so badly. It turns out he's in Sanguina Tell's debt.

this quest is bugged if you kill Lothar first and then do this quest you have no way to get your gear back the only option i had is dropping all my items in the room and then fight the mobs with nothing in my inventory