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FextraBot

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This doesn't work or is bugged :/
I couldn't combine the lever with the switch either at first. Double checked and noticed it wasn't in my actual character's inventory, so I put it there. Dropped and picked it up as well for good measure, after that combining worked just fine.
Unless you meant the "bringing the dwarf to low hp" part, because that didn't work for me either.
At some point the dwarf will fall down, I think it was after the second tome when he said something along the lines of “this bloody body” that’s when I freed him and the demon spawned outside of his body.
So do you have to do like 5 billion damage or something? because iv been hitting him then fully healing him for the past 5 min and hes still standing.
attack him until he says "this bloody prison" than maybe just a bit more, then destroy pillars and demon should appear outside the possessed dwarf.
Guys just hit him till he says something about "THIS BLOODY PRISON" then undo the chains the demon will appear and the dwarf is free. Then kll the demon beware though he can posses your crew members aswell
he instantly possesses someone , either you attack him or not , any solution?
You need to 'torture' the demon, just as the guardian said he was going to. Pay attention when hitting and healing the dwarf because he won't repeat the two lines showing that the demon is getting agitated.
After the "BLOODY PRISON" line, when i broke the chains the dwarf was still possessed. The demon popped out after I brought him low so as long as you don't kill the dwarf, everything works.
After rescuing the dwarf I can't find (I found something kind of thing) his treasure. It won't appear no matter how high my wits are and I look in the area. :(
The Dwarf's treasure is located at X:193 Y:379 West side of the Island ,where there are 3 graves/cross.
So I hit him a lot, and after I gained XP I undid teh chains, teh demon spawned dead from him, then I moved him out of the cell, and he attacked me, teh guardian still talks about failure.

Solution:
1-Beat the dwarf while chained until you gain XP (around 23k)
2-After you gain XP, not after he says stuff about bloody prison, destroy the pillars.
3-talk to him to gain journal update
4-talk to teh guardian (leave the dwarf inside)
5-pick reward.
can someone upload some kind of video for this please ? no way i can do it