Far Cry 6 Message Board  

I must have restarted about ten times along with trying every other "fix" suggested online to resolve the problem on the Bury the Hatchet assignment. I would grab the machete from the table but the game never recognized I had it. Well, I did show it in my inventory, but the quest did not tell me to flee and the quest remained open.

I would approach the bar from the front each time, snipe the soldiers, then retrieve the machete. This last time I took a trail up the mountain behind the bar. As soon as I arrived overlooking the bar, the conversation kicked in about the quest, I was able to eliminate the soldiers, and once I grabbed the machete the quest moved on.

So it appears that the location in which you approach the bar makes a difference.