So I’m up to the part of curiosity becomes fear where you have to get out of her line of sight.. but no matter where I go it doesn’t show me either a wall to lean on to hide, or no matter how far I go I can’t seem to get out of her sight for some reason and can’t progress.. anyone else having trouble? 

Did you holster your weapon (R3)? Holster weapon and walk close to a chair or wall will enable the observe menu.