It wouldn't let me turn mine in to Arach Jalaal, and my bud couldn't do it with NM either. Just says hit B for "Not now." So either that was the bug for the faction quests, or Bungie went in and locked those quests before too many people turned them in and got nothing for it. Either way, you can't physically turn in the faction quests till TTK now, so don't worry.
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In others words, you won't be able to hand in fraction quest till TTK is launched on the 15th.
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