pocketnunu: Actually, there should be one more clue. <Hint> On the floor. (But IIRC Geralt does make comments while examining the red clues.) Once you fint the clue on the floor, you should be able to make progress.
US_Frostburn: Unfortuantely for myself and some others the item isn't on the floor *Witcher sense doesn't show it, and we cannot continue with the quest. It seems the quest can bug at several locations. Here is a video of how the quest is bugged for myself though:
https://www.youtube.com/watch?v=ZxqiTyciJpc Hmm. I don't know what else to suggest. Apparently it's a well-known bug. I guess you've tried loading a previous save? Exit game, exit GOG or tried playing off line, then reloading game? Even restarting computer/console? Did you check out Tamara's room too? (I'm on computer, never had a problem with bloody baron quests.)
SPOILER The video did not show Geralt inspecting every nook and cranny. I misremembered the hint about the clue on the floor. To get that clue, yes, you check out the red clues of the candlestick and on the wall. There should be a painting that matches the wall clue, on another wall nearby, that hides a hole. IIRC the painting should show up red too. Go further into the room. There's a wardrobe/closet with a hole inside, behind that painting, and another red clue that matches the candlestick. Go back to the candlestick and voila! There's the clue on the floor, a wine stain that you follow the scent, leads to another red clue on the stairs, and then the trail ends. Talk to the baron about what you found.
Now that I am thinking about this, I wonder if you have to check out the Find a Witch quest first. I held off doing the bloody baron, and did a bunch of other things first, including finding Keira Metz (who has a whole questline - if you help her with her first quest, she tells you about the witches in Crookback Bog, but you can hold off doing the rest of her questline). So the question is, did you do the bloody baron right away when it became available, OR does doing other quests/things first NOT bug the bloody baron? Or is the bug random?