This is still happening. The NPC, "a twisted Far Seas crew member" has the small bag icon next to name and a mouse-over the target window, states they are for the quest: Stretched Reality
they don't update though, I also found only 3 areas with sparkling effect that counted as 3 / 4 of the updates. Currently I am stuck with 3/4. Ok the final update showed itself. Perhaps if others are on the quest might be causing an issue? The location that was giving me grief to find was at approximately /waypoint 934, 13, 1421. In any case, it needs to
not show the bag next to the mobs' name for step 2, while on step 1.