I think I know the answer to this one, but what do people think?
Stage 2B of To Catch an Orc reads: "Response: After questing successfully, cancel all progress that would be placed on this stage. Then, place 1 time counter on this stage. Or, if Mugash is in play, advance to stage 3."
My interpretation of the "Then" clause [see the "Ered Nimrais" thread for lengthy discussion and official ruling] is that, if you have quested successfully but were not going to place any progress on the stage (because of an active location), therefore the "Then" clause will fail because no progress has been cancelled. Does this sound right? It passes the "make things harder for the player" test.