So just did this quest again recently on a brand new file after....sadly
, my old file got corrupted. It's been roughly a year since I've gotten the razor last time but something I've been wondering this time around now that I've been paying more attention is, does the Banishing effect work on Vampires and Dremora? I know it does not work on Essentials and Creatures but as Vampires and Dremora have NPC souls, I was wondering if the dagger actually banished them as well or if they were included in the creature faction?
I looked on the Oblivion Wiki but couldn't find the answer I was looking for. Does anybody know the restrictions on the Banishment ability?