Works fine for me. Whenever I set my character to lv5 it adds an Ebony wand to my inventory, even if I already had one. If you want the Ivory wand you can just create it with the Ebony.
Noticed this as well. There's a pile of corpses from the same NPC in plate armor respawning then attacking the same settlement over and over. There should at least be a large gap between the time when this guy dies and when he's back attacking again.