Some of the Faction Class Items introduced with Rise of Iron are bugged and do not register for the Exotic Faction Class Item Quests.
Bungie is fully aware of this issue and they are currently investigating it. If you still have any [b]Year 2[/b] Faction Class Items, or [b]Spektar[/b] Faction Class Items (obtained via [b]Chroma Armour[/b] rank up reward packages), you can still progress in the quest, as these types of Faction Class Items are not affected.[quote]Exotic Faction Class Items: As noted below in the 2.4.0 Known Issues List, respawn animations granted by Exotic Faction Class Items are not functioning properly. Additionally, we are aware that many Faction Class Items are not able to progress Exotic Faction Quests. Players may progress these Quests if they equip any Year 2 or Spektar Faction Class Items.[/quote]Quoted from: https://www.bungie.net/en/Forums/Post/213318340?page=0&sort=0&showBanned=0&path=0
I apologize for the inconvenience and frustration this may have caused you.
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Hey Mentor might want to mention to players having issues that they might want to look for the legendary version of the exotic class item cloak for the hunter because Im actually wearing cloak of the rising but its legendary which is counting for the quest plus I have both exotic and legendary version of Cloak of Oblivion from dead orbit.