Desmond and Jade toured the city visiting many different bars and businesses to see if anyone had seen or heard of a female wolf-beastman in the area. They had been at it for almost two days at this point.
Lucius wanted to move on from Varris, but was convinced by the guard captain that without a hint of what direction they went, then the likelihood of finding her would be impossible.
After the incident at the inn with Lucius's explosive episode of anger and the torture of one of their carriage drivers, the city guard decided to work closely with him. They wanted to prevent future incidents with similar outcomes. As Desmond suspected though, their efforts were in vain.
One of the co-conspirators who was in contact with their carriage driver was found a few blocks away from the inn. She had been trying to keep an eye on the situation after Kalliope's kidnapping. Lucius was able to locate her quickly and chased her halfway across Varris.