So I don't know if I'm doing something wrong, but I can't find where the toggle part for the brothel is at, it says in the notes to talk to the goblin but I see no difference in her dialogue.
Also where's the new area exactly?
You need to talk to the Sign Up sheet on the counter, where you usually register for a shift.
The new area is the first path leading to the left after you exit the Goblin Village. Just walk down that left path and you will enter a new area.
