Daphne's Wraith is a specter in the Blood and Wine expansion and can either be dealt with peacefully or killed off.
During his stay in Toussaint, Geralt became involved with a curiuos case of gynodendromorphy - that is to say, a woman who had been turned into a tree. When one cut into this tree's bark, it bled, and when the wind blew through its leaves, one could hear muffled sobs. Geralt investigated the matter and learned magic (or possibly a curse) was responsible for the transformation, and it surely had something to do with a certain sad episode form the woman's past. The love of Daphne's life, a knight errant, had gone to the witch of Lynx Crag and never returned, leaving her to wait for him forever, filled with sadness and longing.
If Geralt threatens the witch:
Our hero visited the witch and decided to force her to disenchant the woman stuck in the tree, but this did not end well. The witch freed Daphne, but the shock was too much for her tortured soul. Daphne's crazed soul turned out to be highly dangerous. It possessed the first living being it came across, a dog, then killed Jacob the woodcutter. Geralt put an end to the wraith's rampage by killing the possessed hound and walked away with a heavy heart, ruing the fate of woman, woodcutter and dog alike.