I finished the main questline, Hlaalu questline, Thieves Guild questline, and a bunch of other quests I can't remember. Now I'm starting Solstheim again. Everything still uses the original Morrowind animations, I can't loot killed Wolves, Snow Wolves, Plague Wolves, Riekling Riders, Riekling Raiders, Draugr, or Grahls. Without being able to loot Lightkeeper Grahl the quest can't continue any further (I can't obtain the Flaming Eye of the Lightkeeper).
Was Solstheim ever considered finished or playable? Or is this something I screwed up?

I think you need a collision
I think you need a collision ESP in this thread.
https://tesrenewal.com/forums/morroblivion-problems/various-bugs