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It isn't a bug! I'd suggest you try replaying it and being more 'persistent' over some options the game gives you.
Down here is how you can avoid this "loop", read at your own discretion.
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For example:

1. when you talk to Wizzy, click on 'examine the corner of the room' three times and the option 'what do you think about the king puppet?' will appear later on.
2. when you talk to Knighter, click 'examine the desk' three times as well, and the same option of 'what do you think about the king puppet?' will appear.
3. If you click 'Crownus room' three times as well after doing both of the previous ones, an additional option will appear where you can 'Don't let Jestyn follow' 

After this, everything else will be up for you to figure out, you just need to be curious enough.

You completely missed the point on why the game "repeated" itself on your run, I'd suggest you try replaying it and being more persistent over some options the game gives you.
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For example:
1. when you talk to Wizzy, click on 'examine the corner of the room' three times and the option 'what do you think about the king puppet?' will appear later on.
2. when you talk to Knighter, click 'examine the desk' three times as well, and the same option of 'what do you think about the king puppet?' will appear.
3. If you click 'Crownus room' three times as well after doing both of the previous ones, an additional option will appear where you can 'Don't let Jestyn follow' 
After this, everything else will be up for you to figure out, you just need to be curious enough.