All you need to do is roll back your KOTOR to an earlier version and dialogue etc will work fine :)
If you have the Steam version:
Go into the KOTOR 2 Page
Hit 'Settings' then 'Properties'
Then in the 'betas' tab, you want to select under the dropdown 'Select the beta you want to opt into: legacy pc -'
This rolls the game back to the original settings, before the 2015 update. I'm not the author of this mod, just a big time enthusiast who managed to get all of the dialogue skipping to work correctly after just doing this quick fix.
Enjoy the mod, I had a blast!
zzZZzzzzx
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