NECRO'D!
I just did it again. This time, I think the item was at 100%...
The sage takes your Quartz and vanishes into his workshop, or whatever it is he is hiding back there.
After a while, he emerges and your Ucdauh's Crown of Wisdom has been repaired. Its new condition is 103 %.
The sage leaves while you still shuffle around in your belongings. You also feel strangely tired.
As you leave, you notice that Ustdaraw appears to be packing. He mumbles that that he is done here.