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Yeah the campfire bug is annoying as hell in kaedwen. Hope they fix it ASAP
Roche path, Act2, in the main upper camp.

Adam Pangratt is the champion you have to beat and he sits by his fire near his tent.

I don't think it's a bug at all - I think it is a clue by the game that there is something strange about being set on fire by campfires - leading one to find out by accident or on purpose about the Pyromaniac Ability.
I think it's a joke by the Devs for TW1 players. Plus you get a nice perk anyway so it's all good.