Use local variables to keep track of what scene-objects, including NPCs, can do. You can order your variables by using forward-slashes, e.g. "NPC/John/CurrentState" so that they appear in sub-popup boxes in the Variable: Check and Variable: Set Actions.
If your Cutscene's When running field is set to Pause Gameplay, then no. Your Character: Animate Actions both have Wait until finished? checked, so if the Cutscene itself is set to block gameplay until it's completed - it won't because it's on a loop.
Set the When running field to Run In Background, from within the Cutscene's properties box.
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