Same here, I just ran through, and the event didn’t start at the end of my first run, so I ran through again and made sure that everything was dead, then I went back to Naralex and he still just laid there sleeping with his lazy self. 
I just completed this successfully. After reading the comments - it looked like most of the failures were from max lvl chars going for the WOTLK achieve. I had done the event, and it failed, and that is what brought me here. After reading Murdercarpet’s comment, which says that it doesn’t fail every time, I decided to try again.
On my second attempt, I ALLOWED THE MOBS TO ATTACK THE DISCIPLE OF NARALEX BEFORE KILLING THEM. and it worked.
DO NOT KILL MOBS AS A LVL 80 UNTIL THEY ATTACK THE ESCORT. If you let both waves smack the mob prior to killing them, he might spawn. At least it was the only difference between my first and second attempt, and on the second attempt I received the achievement.
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Still broken as of this post. 29/11/2022. The above solution worked, but most people like me won’t be reading this before they clear the dungeon meaning 2 or more runs.
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1/22/2023 - still bugged
2/25/2023 - still bugged. I just saw Notcolors comment, but not about to run the whole instance again to try it. Can’t Blizz fix this?
probably… but the people who need to see the posts won’t see them here.
Post in the Classic Bug Report forum.
Still happening April 23rd 2023. Just tried to clear it for my friend, Mutanus still doesn’t spawn. Real great game…
Hi fellas, i dont know if it is a close solution but, in my case, i did a run dungeon with a character lvl 80 (first defeating the bosses for the preparations and then speaking with the tauren npc for the escolt event) and killed any mob with the lowest damage possible until the boss finally appears.
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August 19th 2023… STILL BROKEN! (┛ಠ_ಠ)┛彡┻━┻
March 2024, still a problem
Just happened to me on Classic Era server.