[ds5400]

I defeated raven and back in Khorinis Vatras told me about the circle of the sun to restore the eye of innos. He said i need to
repair the setting on the eye which Bennet had done chapters earlier. I remember earlier in game it said the setting had been repaired but now it has reverted back to 'dull and powerless' and their is no dialogue available with bennet to get a second repair.

[Arkain]

Dull and powerless is the default if it isn't charged. It changes once you complete the ritual.

Do you have no option to continue with the whole thing at all or is it mostly that the eye's description seemed odd to you?

[ds5400]

i just remember getting the setting restored earlier in the game, so thought it odd the Vatras asked me once again to get it repaired.

[Arkain]

Odd. Usually Vatras tells you what to do, you do the things and that's about it. If you haven't completed Jharkendar you shouldn't even be able to ask him how to proceed and thus about the repair. However, you can ask Bennet about it and have him repair the amulet basically right after you get it, without any help from Vatras. Maybe that's the issue?
Does the description say that it's repaired?

[ds5400]

Perhaps it has already been repaired and i should just proceed with the circle of the sun ritual?

[Arkain]

I would go for that. If it goes well, no harm done. If it doesn't one can always look for problems.