I'm attempting this today, and I can confirm you can no longer just keep handing this guy Tiny Gem from Lesser Spirit to gain faction. I received the first faction hit of +100 True Spirit and that was all. After subsequent attempts he takes the Tiny Gem and just continues with the Shaman Epic quest dialogue of "seeing how much he can get for it".
Also, you cannot hand the Opaque Gem to Ooglyn in Eurd's Crossing for any sort of True Spirit faction increase unless you're a Shaman. I attempted with indifferent TS faction on my 2nd Shadowknight and she just hands the Opaque Gem directly back without ANY dialogue.
Edited, Feb 4th 2022 8:31pm by VonsneerTheScoundrel