The only thing I can think of is this section from Jarulf's Guide:
"In single player (but not in multi player) the game keeps track of what unique items have been dropped (or recreated at game start in a characters inventory) and if the same item is determined to be dropped again (or regenerated at game start), the next one with the same qlvl or the one with the next lower qlvl will instead be dropped. Thus in single player you can actually find those "unfindable" unique items but you must find at last one other unique item of the same base item first. The game will forget the list of found unique items when you restart a new game however. The list is saved when you save the game in single player but not restored upon load except for those items you have equipped."
However, I don't think this works for quests. And besides, the Veil of Steel has its own base item, it is does not share a base item(crown) with the Royal Circlet..
My guess is that you killed a monster near Lachdanan and it dropped the Royal Circlet.
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"In single player (but not in multi player) the game keeps track of what unique items have been dropped (or recreated at game start in a characters inventory) and if the same item is determined to be dropped again (or regenerated at game start), the next one with the same qlvl or the one with the next lower qlvl will instead be dropped. Thus in single player you can actually find those "unfindable" unique items but you must find at last one other unique item of the same base item first. The game will forget the list of found unique items when you restart a new game however. The list is saved when you save the game in single player but not restored upon load except for those items you have equipped."
However, I don't think this works for quests. And besides, the Veil of Steel has its own base item, it is does not share a base item(crown) with the Royal Circlet..
My guess is that you killed a monster near Lachdanan and it dropped the Royal Circlet.