When using "look around" during the fair, chance to encounter Tao and Barrel.
The extra scene isn't another option it still triggers under "just watch". Seems to be fairly random when it shows up.
Obviously means you need to have both Tao (invited) and Barrel (good bandit standing?) Going to the fair.
It needs to be added that there is the option to 'put a stop to it once and for all' which sould remove any Tao/ Barrel event.
If it is not showing up maybe you pressed that in an earlier update?