Yeah, I had the same problem and couldn't figure out why I wasn't making progress. I asked the forum and a kind guardian informed me of the problem. It's pretty dumb that the new class items don't work, especially as I'd dismantled the old NM cloak I'd been saving for the quest
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Well given that Bungie hasn't acknowledge this forum topic that I have made, currently it's serving as an awareness post until Bungie acknowledges it. And I'll keep bumping it until they do.