So I finally hit rank 25 on my faction, got the exotic quest and equipped practically all the things the quest required. I popped into some heroic strikes, killed some enemies, and yet nothing happened. I was wondering if I needed a year 2 class item instead or if this quest hasn't been updated for year 3 yet.
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I am having the same issue with the faction exotic quest. Using a yr 3 class item that isn't counting as a faction quest class item.
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Yeah, it would appear yr3 class items are currently bugged for this quest. Use a yr2 class item if you have one or you'll just have to wait for a fix.