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Arx Outskirts is a location in Divinity Original Sin II.
very cool fight, with hermit, have to prep the field for battle first to achieve victory reliably... with 5 something telekinesis u can just sneak up and suck up all the death fog barrels from the podium that is initially accessible ... then once the fight starts goal is to either be death/deathfog immune (death resist/airbubble) or have fortify on so that u do not get teleported.
I found no quest related to the hermit but the task is manageable albeit tedious (XP and some good loot on the Hermit). These are the steps that worked for me: 1) Sneak up to the small voidlings (sneak shows you the sight cones). The small ones appear to be blind so just ensure you cannot be spotted when you use tornado to clear up as much deathfog as possible. Destroy any deathfog barrels in sight (more deathfog pours out). As there are fog barrels out of reach use a summoning to trigger a fight as Loic (the Hermit) will teleport them onto your pet. If you stay back far enough the figh will end with the death of your summoned pet and you can clear up the fog. Rinse and repeat as required. 2) Initiate the figh and kill all voidwoken as they heal Loic. Mine were weak against poison but check this (square button - examine) as this might be randomised. Note, make sure all non-undead characters are fortified throughout the fight as this prevents teleportation! 3) Once all minions are dead trash Loic. He is undead so healing spells provide extra damage (fire and poison heal him so keep him away from any fire he throws at you). Enjoy the loot! He has a powerful cursed firewand he will bequeath to you at his demise. :P Side note, I used Fane to scour the area for loot after the fight as he is immune to any lingering shreds of deathfog.
Any idea if there is any quest related to the Hermit's Hideaway area? You can see it on the map, near the Lady Vengeance shipwreck. I teleported there, there's a nice chest, but then it has a deathfog lake, packed with nasty voidwoken and a boss who's very skilled at regenerating health and armor all the time and - ouch - teleporting players into the deathfog for insta-death. The mobs are good xp, but all my teamates died from the death fog (what was not covered by deathfog was covered by necrofire...) and there was no way to kill all the nasties alone with my UD main and rez the whole party... sniff