What does this blue asterisk/star indicate on top of an NPC?

I've just informed the blacksmith that his apprentice is dead, and now he's got an odd icon over his head:

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It looks like a blue asterisk or some kind of star. What does this symbol indicate?


Solution 1:

It means they have information for you. If you click on them and select talk, it should provide you new options you haven't seen before (not grayed out).

Solution 2:

It means they have a new dialog or conversation that you can initiate. New topics will be in white text, and ones that you have already heard will be in grey.