So here I am replaying the MM series while waiting for the next Indi game and I just finished MM3.
Here is what I did this time to "trick" the game re: that darn dynamite because I blew up the orc fortress before remembering I needed dynamite for quest #2 (IMO that kid should have been found in itty bitty pieces after blowing up the barrel). I used the reward from Grimoire Chronicles to blow up (I mean rescue) that kid.
So how do you "complete" the ancient library book "Take me higher"? Knowing I couldn't complete it without dynamite, I just didn't open the book. I completed every other book including "Bitter Truth" and "Treasure of Memories" and even received the Ops Vir accessory from the chest suddenly surrounded by orbs. I never received a single complaint from the game that I had not completed the "Take me Higher" book.
I did this because Quest #2 would have been uncompleted and I assumed from what I have read on the forum that I would be blocked by the lady in "Bitter Truth" .
I know its a few years late, but, hey I found a solution "on my own" (with the help of everyone else here).
I've spent almost as much time on this forum as playing the game for the past week.