While doing quest and failed then going back to try quest again this happened. Was not able to distract the first 2 guards, the '?' would appear and dialogue would happen but the guards would not move. Kept getting caught so I figured it was a bug, exited the game (which as progression goes your location should be saved and not have to start at the very beginning to continue quest) once I came back into the game the distraction worked as it should. So for sure a bug since reloading fixed issue, but shouldn't have to reload.