After collecting the three items, move forward. You'll see a pack of dogs ahead. Don't engage them directly; go upstairs first to take out a Witch Doctor, otherwise they won't die.
First, come up here and take out the bell-ringer.
After defeating him, we should still be in combat. Jump directly off the platform and kill the wolf below. After killing the wolf, go to the second floor and release the old man from the cage.
Talk to them after releasing them, and the 'Xiao Cui' quest we accepted earlier in Lu Family Village will update. Now head right to collect the Dust we missed earlier. There's one by the cage and another by the platform.
After getting it, jump straight down. There's another purple item behind you.
After obtaining this purple item, turn back and use the Lion Head to burn away the thorns on the left.
After sliding down, you'll see a short cutscene. Once it's over, turn back and grab the Dust behind you.
After getting the Dust, turn back and go left to release the person in the cage. There's another item to the left of the cage.
The person in the cage will give us an offensive accessory, the 'Amulet of Despair'.
