Chaos on the streets of Stonebridge

[needless]

Right after I finished the Cradle mission, I was making my way back to the library, and as soon as I entered Stonebridge Proper, I was greeted with a keeper sorceror waxing a civilian right in front of me. Thinking that was odd, I continue on and run right into a battle between guards and more keeper sorcerors in the street, bodies already piling up. Everyone but the keepers are hostile to me, even the two wannabe thieves outside the church.

Has anyone else experienced this? I assumed it was bug, since there was nothing in the storyline suggesting it, and for the fact that there were keepers (regular ones, not enforcers) running the streets. Add to that fact that a couple of Pagans turned up by the end of it (and AFAIK, there aren't any Pagans in Stonebridge Proper)

Even if it was a bug, it was still kind of fun to see mass anarchy in Stonebridge and just be a casual observer, rather than the cause of it.