alcoholcat OK. So the problem is that the self switch for the Annah sparkle is set to on in your save.
This means that at some point, the event ID for for this conversation event was (#29) was assigned to something else on the map which you interacted with and set the self switch on for. It's annoying but it's an occupational hazard for such a large RPG Maker game. This can be fixed in the next update by Sierra deleting and recreating the event so that it has a new event ID. I'll pass her the diagnosis and let you know when a fix is implemented.
Alternately, restarting from Ch1 will fix the problem.