I did notice when I tested a new game to see if he would give a tutourial on what the icons meant that he wasn't at the castle but in the game where I was before he was there talking about if you ever need a merchant. I'm no RPGmaker wiz but my best guess is that if you interacted with and used his old system at least once before the update you are fine if not then his lack of an introduction flag is whats causing it.