I think you may actually be stuck in the plaza: to be clear, that's the brightly lit place with all the tile and the artificial river. Entertainment District I is above/to the "north". Once you finish at the porn shop, you should be able to leave the plaza and continue.
Took a look and figured it out: when I re-did some things to fix an earlier bug, I forgot to apply the new switch logic to both the Hyena thug AND the stairs themselves. You probably triggered the scene by trying to go up the stairs in the Porn shop. Talk to the hyena beside them instead. This'll be fixed on the next bugfix release.
I have...no idea how that was missed. Yet another switch that wasn't getting flipped back correctly (in two different places!). I've tested the patch in a number combinations and it SEEMS to be fixed now. I certainly hope so, as this is the third time trying to get this simple thing to trigger right. I must have been changing something each time and forgetting to account for it. Regardless, it's fixed now. I'll try to have the new version up fairly soon. Surprised you were the only one who brought this up, though it isn't a COMPLETE progress barrier: you can still get around it by defeating Mahir when you first meet him.