First off, when I talked to the NPC and went though the dialog to update the quest, no "Quest Update!" message popped up when the NPC updated my quest. The quest did successfully update, but no message or ding displayed on my screen. The second NPC who is involved in the quest however, gives the "Quest Update!" message and the ding when updating your quest through dialog. I've been trying to find if there is something wrong with the SpawnScript but I cannot find anything. I'll keep looking.
Secondly, when the first step does get updated, and you receive the second step to kill mobs, the little skull and bones images for the KillStep appear for the first step. Note, both of these steps are under the same TaskGroup. Killing the mobs will still give quest updates, and such, but the icons are displaying under the first step in the taskgroup.
This is also replicated when I create four steps under the same taskgroup. 3 of the steps are Location update and the 4th step is to harvest three roots. The root icons and "Quest Item Found! 1/3" appear when I do the first step.
If you want to see for yourself, the quest script is called "ghost_and_goblins.lua". The NPC who gives silent updates is the Forest Keeper and the NPC who gives proper updates is a Sapswill soothsayer.
EDIT (CONFIRMED):
I believe the "silent updates" occur only when you are updating a QuestStep but not it's corresponding TaskGroup (when you have multiple bullets under a main bullet) and the step is being updated via the SetStepComplete LUA function. Whenever I update both step and task group, the message pops up with a ding.

