Devices and Desires question

I read on the wiki that I need to have 0 quality for Bizarre, Dreaded, and Respectable in order to get the clockwork drownie option to show up. However, I can’t unequip my yacht (+2 respectable) from my posessions. Am I locked out of finishing this storyline because of that?

Nope - you just have to find an item that lowers Respectable, and equip that. There are several places to find such items - particularly, in Parabola, in the Hinterlands, in your University Laboratory, and in the Bazaar Sidestreets.