I was able to use its Crucible of Flame power for damage right up until the final encounter with the Avatar. But once I got to the Avatar, I found that the power was blacked out on my action bar and was saying “you can’t use that here”.
(Which is a problem because you need to heal the Avatar and obviously all classes can’t heal. Before, I’ve been able to use Crucible of Flame to heal the Avatar, but now it’s not working.)
I hearthed back to Boralus, at which point the power was usable again. Went into Battle of Dazar’Alor, power still working. Went back to Temple of Sethraliss, not working again.
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Same issue - makes trying to complete https://www.wowhead.com/quest=50551/temple-of-sethraliss-avatar-of-the-loa impossible solo for non-healing classes.
Bandages do not work.
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I had it work in Mythic, and then when I went back in on Heroic it didn’t work with the same error text you have. Bizarre. TWW bandages don’t work either 
I also didn’t get credit for killing Galvazzt. I wonder if it’s related somehow. (EDIT: No, I don’t think so. Just gotta kill that boss a little slower.)
OK, just did it on Normal and it worked again. I think it worked because I equipped the neck right before talking to the Avatar to start the fight, which is what I had done on Mythic. Try that?