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I have played the game with several different characters. To do something different I wanted Illia for my personal steward at Lakeview Manor. Generally for ease of purpose I usually make my housecarls into my personal stewards. Its noted on Illia's page that there are several glitches she possesses. I had no issue making her my follower after the Repentance quest. When I took her to Lakeview manor the personal steward prompt automatically came up. However when I talk to her, only her original topics are available: "You killed her" and "what is this place?" She now takes up space as my follower and steward while she cannot fulfill the duties of either. Should I simply use the console commands to remove her as steward or is there an alternative?

I had a similar issue on 360 with Marcurio. In the end, killing him and replacing him was the only way I could fix it. But on PC, I don't know if you could remove the faction(s) or if it's tied to a quest. You may have to proceed by trial and error. Good place to start would be here on the wiki, then might want to check the associated info in the CK and see if you can finagle a workaround.

Sorry I couldn't give you a definitive answer. Good luck!