Phon had a bad feeling about his sister's disappearance. After you followed his request to look for the sister, you heard that Berenus had killed a woman from the Dragonbound. When you met with Storing, you received an accessory from the Dragonbound woman, which you passed on to Phon. Phon was upset because the accessory was one of Klara's. Phon's face unsettled you.