Keystone - Kyle's Grave | Side quests Lords of the Fallen Guide

After the fight with the Spirit, claim your weapon.

At the Cemetery, along your path, you can find a dug-up grave [M2.32]. Interact with it to learn a story. You need to find a cursed weapon - Curse (a shortsword) that you have found at the Citadel ([M5.26]). Bury the sword in the grave. After you do that, there appears a spirit here. For defeating him, you receive an additional 1500 EXP, and you will be able to take the improved weapon from the grave.