You give a heart-shaped box of candy to Marshal Diana.

*** Various quest related spam cut ***

You receive 500 experience points!

*** Yay I have completed the academy quest (unless it has changed) ***

You raise a level!! Your gain is: 13/92 hp, 10/153 m, 10/215 mv 3/5 prac.

** Woo, also gained a rank! ***

You failed to complete the quest 'Academy: Simon's Delivery Quest' by
level 5.

** Doh, got a failed quest, even though I completed it. The rank 5-6 made it fail (No message from Simon congratulating me) ***

n/t

I just saw this with another quest:

The orc guard throws his head back and cackles wickedly.
The orc guard says 'You smash her good and bring proof!'
The orc guard says 'Me steal these from elf, they do you more good than me.'
The orc guard hands you some leather traveling boots.
You receive 3000 experience points.
You raise a level!! Your gain is: 9/129 hp, 14/245 m, 8/249 mv 3/14 prac.
You failed to complete the quest 'Aldevari: Gralan's Second Task' by level 10.

I was lvl10 when I gave him the item he wanted, and the xp advanced me to lvl11. The quest shows up as "failed" using the "quests" command, even though I got the xp and the reward.

n/t