After the TU 1.5.1, Reda still gives a contract to kill a Jotun which happens to be a friendly Jotun who is the girlfriend of a Dwarf in the Jordeygr Shelter.
While this is related this is kind of the issue with the item in the patch notes:
"Unable to harm some enemies in Svartalfheim as they're recognized as friendly. Not your buddy, friend."
However, the girlfriend should NOT be a target as they are your friend.
WORKAROUND: The workaround to this problem is to create a save, load your save, and the target changes from the Jotun girlfriend to an enemy Jotun at a nearby camp.
VIDEO (w/ Workaround):