Basically using Ticuu's as A normal bow does work for the Gaurdian kills portion of step 2 of the catalyst quest (Points Piercing Forever) but using the Exotic trait combo of hip fire to apply sacred flame and a ADS shot to ignite the flames doesnt apply progress towards Gaurdian kills. Video I made shows plain as daylight
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I have the same problem, but it's not my main issue with the catalyst quest in general. Making everyone sweat their backsides off in crucible against felwinter apes for a PVE exotic is cancerous and Bungie should know better. At the very least, there should be an either/or option to get progress faster in PVP.