Help with Dammon in act 2

I don't know what happened but I found the teiflings in the inn, spoke with them AND DAMMON in a cut scene, then suddenly he is gone.

I see all the other teiflings but I can't find him anywhere. He's not at the blacksmiths or anywhere inside the inn. Even when I look at the map, there is no yellow dot for him.

I am trying to trigger the next steps to save karlach, but since I can't find him, I'm stuck.

I figure I've either glitched something, did something in the wrong order...or he can be found elsewhere?

I did not speak with him during act 1 (or at least I don't remember) so this should be my first meeting.

Any help would be much appreciated!