I can confirm that the quest is bugged (at least when I checked a month ago), but in a different manner: You need to be neutral or worse faction to get the quest to start where as it should be better than neutral.
You can work around the container problem in the meantime by speaking to the trainer infront of trueshot. Ask him about training excersies and he will give you a container. You can use this one to succesfully make the staff you need. I finnished my trueshot bow quest this way.
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