My first time playing Oblivion and the same thing happened to me in Kvach. Reloaded an autosave a few screens back and fixed it, but ended up accidentally hitting one of the guards during the battle and got a bounty. I didn't notice until after the battle and got arrested with Martin Septum on the road. I get wanting things to unfold randomly, bꦬut Oblivion and Skyrim are games that you can never save to much in my opinion or you get game / immersion breaking glitches that ruin the playthrough