There is a known, relatively rare issue with lockpicking or pickpocket (in certain areas and circumstances) where the crime reaction does not ending properly.
There is a workaround for this, which I'll describe that below, but since I loaded your save anyway to check that this was the problem, I reset the crime scene in the developer build of the game and resaved.
https://www.dropbox.com/s/vycw063kkwzic3p/DOS2_Save_Ifan-bug-resave-tmp.zip?dl=1The workaround would be to have the character (Ifan, in this case) approach a relatively small group of NPCs (such as the Arx outskirts), get into combat and then escape. After returning again, they would get a crime warning dialog ('hey, I saw that', 'hands off', etc), but the NPCs would not turn hostile. Their opinions would be lower, so it would be best to do this with NPCs that are not traders or involved in open quests.