This quest becomes available once you’ve completed Investigate Neretzes’s Folly by speaking with a noble from each of the major factions.
Where to Find Arzagos at Marunath
If you’re looking for Arzagos immediately after receiving the quest, you should find him at Marunath, a large settlement located in Battania, northwestern Calradia. If you’ve waited a few days or for whatever reason you can’t find Arzagos at Marunath, you can open the encyclopedia and search his name. You’ll then be able to see where he was last seen in Calradia, giving you an idea of which region to look for him in. Regardless of the settlement you find him in, you should check the tavern and the streets, as these are the primary locations where he can be found. Alternatively, just select his avatar from the top right of the screen when you interact with a settlement.
Tell Arzagos: Destroy the Empire or Undecided?
When you speak with Arzagos he’ll ask what you intend to do with The Dragon Banner, should you come into possession of all three of its pieces and repair it. Arzagos would like to see the Empire destroyed, so if you want to know where a piece of the banner can be found, you should tell him that you also want to destroy it. If you tell Arzagos that you haven’t made up your mind, he won’t tell you anything.
Where to Find a Piece of The Dragon Banner at Hideout
After speaking with Arzagos, the location of the hideout where the piece of The Dragon Banner can be found will be automatically added to the tracker. The hideout should be close to the settlement where you first met Arzagos, which is just west of Marunath if you found him there. All you need to do is travel the hideout and attack it, clearing it of all enemies. You won’t need to look for the banner during the fight, since it will be acquired automatically once the attack is over. The quest will end after this.