If you reread it, it does not say that the lands of the Dvergar are to the west, he picked the Branch of Ruin from the base, and then went to the Dvergars to have the staff made. Plus, we don't know how much about these stories are myth and how much are true (in the game). For example, Yagrush was made for confrontations against Leviathan on the high-seas, but we know that Leviathan is stuck in his protocrystal.
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