This One's a Classic
Laughs-at-All is struggling to understand humor. He heard a rumor about a sacred Dark Elf performance from a distant past.
I should be able to find clues to the Dark Elf performance in the Kragenmoor tomb. I should keep my eyes open for them, along with any reference to a death sentence for performing it.
— game journal
When the player returns with the information for Laughs-at-All, he doesn't understand the words, but he seems confident to finally learn about humor.