I think it's the first time I've had invisible characters (that weren't supposed to be invisible) in a casual game. Apparently the dogs were supposed to be standing on the rug barking at you. The hotspot was on the rug. Your character says something to the effect that he didn't know how the dogs got down the ladder.

I also had problems with a puzzle that didn't reset properly -- the puzzle with 2 knife switches and 2 hourglasses. Instead of resetting the knife switch on the left, resetting froze it in the down position. Exiting the game, rebooting, and going back into the game, the knife switch was frozen in the up position, but it behaved as if it were stuck in the down position.

EDIT --
Just finished a replay of Moorgate Accord, the first one in the Vermillion Watch series. The puzzles were definitely better overall, and no bugs.

I've found the storyline a bit confusing. Puzzles are unique. There's a lot of backtracking, so I'm relying a lot on the map. Overall, this game is well done and more challenging than many I've recently played. Reccommend for anyone up for a challenge. I've not yet run into any glitches, but only about halfway through.